Thailand

THAILAND

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS THAI
DEPENDENCIES
BIBLIOGRAPHY

Kingdom of Thailand

Prates Thai

CAPITAL: Bangkok (Krung Thep)

FLAG: The national flag, adopted in 1917, consists of five horizontal stripes. The outermost are red (symbolizing the Thai people); those adjacent are white (symbolizing Buddhism); the blue center stripe (representing the monarchy) is twice as high as each of the other four.

ANTHEM: There are three national anthems: Pleng Sansen Phra Barami (Anthem Eulogizing His Majesty); Pleng Chard Thai (Thai National Anthem); and Pleng Maha Chati (Anthem of Great Victory), an instrumental composition.

MONETARY UNIT: The baht (b) is divided into 100 satang. There are coins of 1, 5, 10, 25, and 50 stangs and 1, 5, and 10 baht, and notes of 50 satang and 1, 5, 10, 20, 50, 60, 100, and 500 baht. b1 = $0.02442 (or $1 = b40.95) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but some traditional units also are used.

HOLIDAYS: New Year's Day, 1 January; Chakkri Day, 6 April; Songkran Day, mid-April; Coronation Day, 5 May; Queen's Birthday, 12 August; Chulalongkorn Day, 23 October; King's Birthday, 5 December; Constitution Day, 10 December. Movable holidays include Makabuja Day, Plowing Festival, and Visakabuja Day.

TIME: 7 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Comprising an area of 514,000 sq km (198,456 sq mi) in Southeast Asia, Thailand (formerly known as Siam) extends almost two-thirds down the Malay Peninsula, with a length of 1,648 km (1,024 mi) n–s and a width of 780 km (485 mi) e–w. Comparatively, the area occupied by Thailand is slightly more than twice the size of the state of Wyoming. It is bordered on the ne and e by Laos, on the se by Cambodia and the Gulf of Thailand (formerly the Gulf of Siam), on the s by Malaysia, on the sw by the Andaman Sea, and on the w and nw by Myanmar, with a total boundary length of 8,082 km (5,022 mi), of which 3,219 km (2000 mi) is coastline.

Thailand's capital city, Bangkok, is located on the Gulf of Thailand coast.

TOPOGRAPHY

Thailand may be divided into five major physical regions: the central valley, the continental highlands of the north and northwest, the northeast, the southeast coast, and the peninsula. The heartland of the nation is the central valley, fronting the Gulf of Thailand and enclosed on three sides by hills and mountains. This valley, the alluvial plain of the Chao Phraya River and of its many tributaries and distributaries, is 365 km (227 mi) from north to south and has an average width of 160–240 km (100–150 mi). On this plain, and most especially on its flat deltaland bordering the Gulf, are found Thailand's main agricultural wealth and population centers.

The continental highlands lie north and west of the central valley. They include North Thailand, surrounded on three sides by Myanmar (Burma until June 1989) and Laos, which is a region of roughly parallel mountain ranges between which the Nan, Yom, Wang, Ping, and other rivers flow southward to join and create the Chao Phraya in the central valley. In the northernmost tip, drainage is northward to the Mekong River; on the western side, drainage runs westward to the Salween in Myanmar. Most of the people of North Thailand live in small intermontane plains and basins that are generally widenings in the major river valleys. Doi Inthanon (2,576 m/8,451 ft) is the highest point in Thailand. Along the Myanmar border from North Thailand to the peninsula is a sparsely inhabited strip of rugged mountains, deep canyons, and restricted valleys. One of the few natural gaps through this wild mountain country is Three Pagodas Pass along the Thailand-Myanmar boundary, used by the Japanese during World War II for their "death railway" (now dismantled) between Thailand and Myanmar.

The northeast, much of it often called the Khorat, is a low, undulating platform roughly 120 to 210 m (400–700 ft) above sea level in the north and west, gradually declining to about 60 m (200 ft) in the southeast. Hill and mountain ranges and scarps separate the northeast from the central valley on the west and from Cambodia on the south; its northern and much of its eastern boundaries are marked by the Mekong River. Most of the northeast is drained by the Mun River and its major tributary, the Chi, which flow eastward into the Mekong. The northeast, in the rain shadow of the Indochina Cordillera, suffers from shortage of water and from generally thin and poor soils.

The small southeast coast region faces the Gulf of Thailand and is separated from the central valley and Cambodia by hills and mountains that rise in places to over 1,500 m (5,000 ft). This is a well-watered area, and the vegetation is, for the most part, lush and tropical. Most of the people live along the narrow coastal plain and the restricted river valleys that drain southward to the Gulf.

Peninsular Thailand extends almost 960 km (600 mi) from the central valley in the north to the boundary of Malaysia in the south and is anywhere from 16 to 217 km (10–135 mi) wide between the Gulf of Thailand on the east and the Andaman Sea (Indian Ocean) and Myanmar on the west. At the Isthmus of Kra, the Peninsula itself is only 24 km (15 mi) wide. A series of north-south ridges, roughly parallel, divide the Peninsula into distinct west and east coast sections. The west coastal plain is narrow—nonexistent in many places—and the coast itself is much indented and often very swampy. The east coastal plain is much wider, up to 32 km (20 mi) in sections, and the coast is smooth, with long beach stretches and few bays. Well-watered (especially the west coast), hot, and densely forested, the Peninsula, unlike most of Thailand, lies within the humid tropical forest zone.

A disastrous tsunami struck southern Thailand and its neighboring Asian countries on 26 December 2004. Stemming from an underwater earthquake about 324 km (180 mi) south of Indonesia's Sumatra island, the tsunami caused more than 5,000 deaths and 4,000 injuries in Thailand. Many of the beaches were severely damaged as well as the island of Phi Phi Lei, which was almost completely leveled.

CLIMATE

Thailand has a tropical climate. For much of the country there are three distinct seasons: the hot season, from March through May; the rainy or wet monsoon, June to October; and the cool season, November through February. While continental Thailand receives most of its precipitation from June through October, rain occurs at all seasons in peninsular Thailand, the largest amount along the west coast from May to October, and along the east coast from October to January. For most of Thailand the temperature rarely falls below 13°c (55°f) or rises above 35°c (95°f), with most places averaging between 24°c and 30°c (75°f and 86°f). The annual rainfall ranges from 102 cm (40 in) in the northeast to over 380 cm (150 in) in the peninsula. Bangkok has an average annual temperature of 28°c (82°f); monthly mean temperatures range from a low of around 25°c (77°f) in December to a high of around 30°c (86°f) in May, and annual rainfall is about 150 cm (59 in).

FLORA AND FAUNA

Many distinctive forms of plant and animal life are found. Forestlands support hardwoods (notably teak), pine, bamboos, and betel and coconut palms; in the coastal lowlands, mangroves and rattan abound. There are over 11,600 plant species found in the country. Among the larger mammals are the bear, otter, and civet cat. Climbing animals include the gibbon and many species of monkeys. There are also sheep, goats, oxen, single-horned rhinoceroses, deer, tapirs, wild cattle, wild hogs, and snakes. There are over 285 bird species and over 265 mammal species. Crocodiles, lizards, and turtles are numerous. Fish abound in the rivers and coastal waters.

ENVIRONMENT

The Promotion and Enhancement of Environmental Quality Act of 1975 charges the National Environment Board with coordination of environmental protection programs in Thailand. The nation's water supply is at risk due to contamination by industry, farming activity, sewage, and salt water, especially in the Bangkok area. Thailand has 210 cu km of renewable water resources, with 91% of annual withdrawals used for farming activities and 4% for industrial purposes. Only 80% of the rural dwellers have access to improved water sources.

Land use in urban areas is regulated by the City Planning Act of 1975, the Control of Construction of Buildings Act of 1936, and the 1960 Act for Cleanliness and Orderliness of the Country. Thailand's cities produce an average of 2.5 million tons of solid waste per year. Watershed regions, undergoing rapid deforestation as a result of increased cultivation of upland areas, have been targeted for protection in the fourth and fifth national plans; overexploitation and pollution of freshwater and marine fisheries have yet to be remedied. Parts of Bangkok have been report as sinking at a rate of 10 cm (4 in) a year because of depletion of the water table. By the 1980s, Thailand had lost about 25% of its original mangrove area.

Urban air and noise pollution is also severe, largely as a result of increasing automobile traffic. In 1992 Thailand was among 50 nations with the world's highest levels of industrial carbon dioxide emissions, which totaled 112.4 million metric tons, a per capita level of 2.02 metric tons. In 2000, the total of carbon dioxide emissions was at 198.6 million metric tons.

Wildlife is partially protected under the Wild Animals Preservation and Protection Act of 1960, but species have been depleted through illegal hunting and trapping. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 36 types of mammals, 42 species of birds, 19 types of reptiles, 3 species of amphibians, 36 species of fish, 1 type of mollusk, and 84 species of plants. Threatened species in Thailand include the pileated gibbon, tiger, Asian elephant, Malayan tapir, Sumatran rhinoceros, Fea's muntjac, Thailand brow-antlered deer, kouprey, green turtle, hawksbill turtle, olive ridley, leatherback, river terrapin, estuarine crocodile, Siamese crocodile, false gavial, and the Javan rhinoceros. Schomburgk's deer and the redtail shark have become extinct.

POPULATION

The population of Thailand in 2005 was estimated by the United Nations (UN) at 65,002,000, which placed it at number 19 in population among the 193 nations of the world. In 2005, approximately 7% of the population was over 65 years of age, with another 23% of the population under 15 years of age. There were 96 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.7%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 70,150,000. The overall population density was 127 per sq km (328 per sq mi), but there are great regional variations in density.

The UN estimated that 31% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.99%. The capital city, Bangkok (Krung Thep), had a population of 6,486,000 in that year. Outside of Bangkok, most major cities are provincial capitals, each generally centered in a changwat (province or county) with the same name as the city.

MIGRATION

Immigration to Thailand, except for the Chinese, has traditionally been comparatively small. The decade of the 1920s was a period of large-scale Chinese immigration of 70,000 to 140,000 a year. Strict immigration regulations have all but stopped the legal flow of Chinese into the country, but during the Franco-Indochinese war some 45,000 Vietnamese refugees settled in Thailand. An immigration quota, introduced in 1947, now limits migration from any one country to 100 persons annually.

In 2003, immigration authorities arrested 280,937 illegal foreigners, including 189,486 unauthorized workers; the workers were from Myanmar, Cambodia, and Laos. In 2004, some 1.3 million foreigners, from Cambodia, Laos and Myanmar, registered as migrant workers in Thailand under a government effort to better regulate their presence. They were further required to re-register in 2005, but to do so they needed a Thai employer. No new immigrants were to be admitted in 2005, and unauthorized migrants were subject to fines and prison.

As of December 1992, the United Nations (UN) estimated that 63,600 refugees were living in Thailand; these represented part of the flood of over four million refugees who had left Cambodia, Laos, and Vietnam since the 1970s. Some 370,000 Cambodians on the Thai–Cambodian border were repatriated during 1992–93. The 36,000 Cambodian refugees who fled their country after the political and military events of 1997 were repatriated by 1999, and three border camps were subsequently closed. In 1986, the Thai government began forcibly repatriating many refugees from Laos. The last refugee camp for Vietnamese was closed in February 1997.

In June 1998, the Thai government formally requested increased assistance from United Nations High Commissioner for Refugees (UNHCR) for some 100,000 Karen and Karenni refugees living in 11 camps in Thailand along the Myanmar border. A comprehensive registration of the border population was completed through the joint efforts of the Thai government and UNHCR in 1999. In 2004, there were 121,139 refugees almost entirely from Myanmar, and 1,044 asylum seekers.

The net migration rate in 2005 was estimated as zero migrants per 1,000 population. Worker remittances in 2003 were $2.8 billion.

ETHNIC GROUPS

Thailand contains more than 30 ethnic groups varying in history, language, religion, appearance, and patterns of livelihood. However, the Thai, akin to the Lao of Laos, the Shan of Myanmar (Burma); and the Thai groupings of southern China comprise about 75% of the total population of Thailand. The Thai may be divided into three major groups and three minor groups. Major groups are the Central Thai (Siamese) of the Central Valley; the Eastern Thai (Lao) of the Northeast (Khorat); the Northern Thai (Lao) of North Thailand; and the Southern Thain (Chao Pak Thai) of peninsular Thailand. Minor groups are the Phuthai of northeastern Khorat, the Shan of the far northwestern corner of northern Thailand, and the Lue in the northeastern section of northern Thailand. The several branches of Thai are united by a common language.

A major ethnic minority are the Chinese, who account for about 14% of the total population. They are generally engaged in business and commerce throughout the country. Other varied ethnic groups account for the remaining 11% of the population. Malays (3–4%) live in the southern peninsula near the border and, to a lesser extent, along the southeast coast; Khmers (1%) are settled all along the Cambodian border from the Mekong to the Gulf of Thailand and Vietnamese or Annamese are found in the southern Khorat and on the southeast coast. Small numbers of residents from India, Europe, and the United States live mainly in urban areas. Principal tribal groups, mainly hill peoples, include the Kui and Kaleung, in the northeast; the Mons, living mainly on the peninsula along the Burmese border; and the Karens, living along the northern Burmese border. There are, in addition, some 20 other minority groups, including the Akha, Musso, Meo, Kamuk, Tin, Lawa, and So; most of these peoples, primitive and small in number, live by shifting cultivation in rugged, isolated mountain or dense forest terrain.

Many of the hill tribe members, called "highlanders" by some, have faced government restrictions due to lack of legal documentation of nationality and citizenship. Citizenship is not granted automatically to children born of undocumented parents. The government has been working to ease requirements for documentation of highlanders, but progress has been slow; an estimated 500,000 highlanders are still undocumented as citizens, and so do not have the right to own land or to equal protection under labor laws.

LANGUAGES

The Thai language, with northern, eastern, central (Bangkok or official Thai), and southern dialects, all distantly related to Chinese, prevails throughout the country. Thai, written in a distinctive alphabet, is thought to be part of the Sino-Tibetan language family, although links to Indian languages are also evident. The Thai dialects for the most part are mutually intelligible only with difficulty. Although the ethnic minorities (including the Malays) generally speak their own languages, Thai is widely understood. The Chinese population is largely bilingual. All official documents are in the central Thai language and script, although English, taught in many secondary schools and colleges, is also used in official and commercial circles.

RELIGIONS

According to government statistics, Theravada Buddhism is the religion of about 94% of the population. However, other nongovernmental agencies and religious groups estimate that the number of Buddhists is only about 85–90%, and in practice, the religious life of Thailand may be described as spirit worship overlaid or mixed in varying degrees with Buddhist and Brahman beliefs imported from India.

While the government estimates that 5% of the population are Muslim, nongovernmental agencies place the number at about 10% of the population, including the Malay ethnic minority. Among the other ethnic minorities, the Chinese practice a traditional mixture of Mahayana Buddhism, Taoism, Confucianism, and ancestor worship. Most Vietnamese are Mahayana Buddhists and most Indians are Hindus (0.1% of the population). Christians have been active in Thailand since the 17th century and account for an estimated 1–2% of the population. Christian churches are primarily Protestant and belong to one of four umbrella organizations in the country, the largest of which is the Evangelical Foundation of Thailand. There are small Baha'i and Jewish communities.

At least six tribal groups which include 500,000–600,000 people; they practice a variety of syncretic customs that draw from animism, Buddhism, Christianity, and Taoism.

Though the constitution does not designate a state religion, Theravada Buddhism is basically practiced as such. The constitution stipulates that the monarch must be a Buddhist and only Buddhists are employed by the government. Religious groups must register under the Religious Affairs Department. Some government subsidies are offered to Buddhist, Islamic, and Christian groups. The government has made efforts to promote interfaith understanding, particularly through regular meetings of the Subcommittee on Religious Affairs, organized through the National Identity Promotion Office.

TRANSPORTATION

Thailand's transportation system is not fully developed, but it is growing rapidly. Owned and operated by the government, the railways, consisting in 2004 of 4,071 km (2,530 mi) of track (all of it narrow gauge), radiate from Bangkok to Malaysia in the south, to the Cambodian border in the east, to Ubon Ratchathani and Nong Khai in the northeast, and to Chiang Mai in the north.

The highway system, significantly expanded during the 1960s and 1970s, serves many areas inaccessible to railway. In 2001 there were 64,600 km (40,142 mi) of roadway, including 62,985 km (39,139 mi) of paved road. Modern two-lane highways now connect Bangkok with the rest of the country. In 2003, registered motor vehicles totaled 7,695,000, including 3,115,000 passenger cars and 4,580,000 commercial vehicles.

Waterways, both river and canal, are Thailand's most important means of inland transport. They carry much of the nation's bulk freight over a network of some 4,000 km (2,500 mi). The Chao Phraya River with its tributaries is the main traffic artery, and Bangkok is its focal point. The modern port of Bangkok at Klong Toey is the chief port for international shipping. Lying some 40 km (25 mi) inland from the sea, its harbor is navigable for vessels up to 10,000 tons, but constant dredging of the Chao Phraya is necessary. To relieve the congestion at Klong Toey, a new modern port was being developed at Sattahip, a former US naval base, and new seaports at Laem Chabang and Hap Ta Phut. Phuket Harbor in southern Thailand has been improved to accommodate 15,000-ton cargo ships. An extensive shipping service also exists along the Gulf of Thailand, and a small Thai merchant fleet plies between local and neighboring ports. In 2005, there were 386 oceangoing vessels of more than 1,000 GRT, totaling 2,038,597 GRT.

Since the end of World War II, Bangkok has become an important center of international aviation. In 2004 there were an estimated 109 airports. As of 2005, a total of 65 had paved runways, and there were three heliports. Principal airports include Bangkok International at Bangkok, Chiang Mai, Hat Yai at Haadyai, and Phuket International at Phuket. The government-owned Thai Airways International and Thai Airways Co. handle international and domestic air traffic, respectively. In 2003, scheduled airline traffic carried about 16.632 million passengers and 1,764 million ton-km of freight.

HISTORY

Archaeological excavations in the 1970s in Ban Chiang, northeastern Thailand, yielded traces of a Bronze Age people, dating as far back as 3600 bc predating Bronze cultures in China and the Middle East. The technical achievements of the Ban Chiang society, as surmised from archaeological evidence, indicate the existence of a settled agrarian people with advanced knowledge of bronze and iron metallurgy. Moreover, the skills demonstrating in their pottery, housing, and printing of silk textiles reflect at least 2,000 years of prior development, a finding that challenges previous concepts of incipient civilization and technology, and Southeast Asia's role in it.

The Thai descended from the ancient Pamir plateau peoples. The Pamir, who are racially related to the Chinese, migrated from southern China to mainland Southeast Asia. While in southern China, the Thai created the powerful Nan-Chao kingdom, but continued pressure from Chinese and Tibetans and the final destruction by Kublai Khan in 1253 forced the Thai southward across the mountain passes into Southeast Asia. After entering the valley of the Chao Phraya River, they defeated and dispersed the Khmer settlers, ancestors of the Cambodians, and established the Kingdom of Thailand.

By the mid-14th century, the Thai expanded and centralized their kingdom at the expense of the Lao, Burmese, and Cambodians. Although Thailand developed trading contacts with the Dutch and Portuguese and with the French and British in the 16th and 17th centuries respectively, it remained a feudal state with a powerful court of nobles. During the reigns of Mongkut (1851–68) and his son Chulalongkorn (1868–1910), however, Thailand emerged from feudalism and entered the modern world. A cabinet of foreign advisers was formed; commercial treaties of friendship were signed with the British (1855) and with the United States and France (1856); the power of nobles was curtailed, slavery abolished, and many court practices, such as prostration in the royal presence, were ended.

The Thai government continued as an absolute monarchy despite the progressive policies of Mongkut and Chulalongkorn. In 1932, however, a bloodless revolution of Westernized intellectuals led to a constitutional monarchy. Since then, Thailand has experienced multiple constitutions, changes of government, and military coups. With the government in a state of flux, political parties tended to cluster around strong personalities rather than political ideologies. At the start of World War II, Thailand, after annexing Burmese and Malayan territories, signed an alliance with Japan and declared war on the United States and the United Kingdom. From 1932 through the 1940s, political life in Thailand centered around Pridi Banomyong and Marshal Phibul Songgram and thereafter around Marshal Sarit Thanarat, until his death in 1963. Sarit's handpicked heir, Marshal Thanom Kittikachorn, subsequently emerged as the country's political leader.

After the war, Thailand became an ally of the United States through their common membership in the Southeast Asia Treaty Organization (SEATO), and various other bilateral treaties and agreements. In January 1965, China announced the formation of the Thailand Patriotic Front, whose purpose was "to strive for the national independence" of Thailand. A limited insurgency subsequently developed in the North and Northeast, growing in intensity in the late 1960s and early 1970s as the Southeast Asian conflict raged on Thailand's northern and northeastern borders. As a SEATO member, Thailand took a direct role in the Vietnam war and supplied a small number of troops in support of the Republic of Vietnam (RVN). Furthermore, it granted US forces the use of air bases in Thailand for massive bombing sorties against the Democratic Republic of Vietnam and the Vietcong. US forces stationed in Thailand increased to as many as 25,000 by the end of 1972. With the termination of the direct US combat role in Vietnam in early 1973, the United States began a gradual withdrawal of military personnel from Thailand. In March 1976, the Thai government ordered the United States to close its remaining military installations in the country and to remove all but a few military aid personnel by July. The communist insurgency continued, with sporadic armed attacks on the government in remote northeastern border provinces.

Internally, Thailand weathered a series of political upheavals in the 1970s. In November 1971, Marshal Thanom, who had been reconfirmed as prime minister in the 1969 general elections, led a bloodless military coup that abrogated the constitution and imposed a state of martial law. In December 1972, an interim constitution that preserved military rule caused student and labor groups to agitate for greater representation in Thai politics. By early October 1973, demonstrations erupted into riots, and on 14 October, Marshal Thanom resigned and quit the country. King Bhumibol Adulyadej stepped into the vacuum and named a national legislative assembly to draft a new constitution. On 7 October 1974, the new constitution—the tenth such document to be promulgated in Thailand since 1932—went into effect. On 26 January 1975, Thailand held its first truly open parliamentary elections since 1957. Some 42 parties competed in the balloting, which produced a coalition government under Seni Pramoj. In March 1975, Seni's government resigned following a no-confidence vote and a right-wing coalition government led by Kukrit Pramoj (Seni's brother) subsequently assumed control, but it too resigned in January 1976. Elections held in April restored Seni Pramoj to power as head of a four-party coalition, but when civil disorder again erupted among students in Bangkok, he was overthrown by the military. The military-led government declared martial law, banned strikes and political parties, and enacted yet another constitution. Promulgation of a subsequent constitution in December 1978 paved the way for elections in 1979, 1983, and 1986. On 9 September 1985, the military swiftly diffused an abortive military coup within several hours. General Prem Tinsulanonda was appointed for a third term as prime minister following the 1986 elections.

Insurgents based in Laos and Cambodia contributed to the nation's political instability by launching guerrilla attacks on the country. Furthermore, an upsurge in the number of refugees from Laos and Cambodia contributed to a humanitarian crisis. In 1979, the government estimated the number of insurgents at 10,000. Following the Vietnamese victory in Cambodia in January 1979, thousands of insurgents took advantage of a government offer of amnesty and surrendered to Thai security forces while others were apprehended subsequently. By the beginning of 1986, fewer than 1,000 Communist insurgents remained active, according to government estimates.

During 1985 and 1986, the Progress Party gained power when cabinet ministers were replaced. A parliamentary defeat over proposed vehicle tax legislation resulted in the dissolution of the House of Representatives. In July 1986 a general election for an enlarged house took place. General Prem formed a coalition government and served as prime minister but opposition parties accused his government of corruption and mismanagement. Additional dissent arose over proposed copyright legislation aimed at controlling counterfeiting of Western products and intellectual property. In 1988 General Prem dissolved summarily the House of Representatives and announced a general election. In the July 1988 election, the Chart Thai gained the largest number of seats. Although its leader, General Chatichai Choonhavan, declared his unsuitability for prime minister, he was appointed to the position. General Chatichai took an active role in foreign affairs and made bold initiatives to improve relations with Laos, Vietnam, and Cambodia. His support declined as his preoccupation with foreign affairs was considered a detriment to his handling of domestic issues, especially regarding government response in the aftermath of a devastating typhoon in November 1989. In July 1990, accusations of corruption led to a motion of "no confidence" that failed to muster a majority in the House of Representatives. In December of that year, General Chatichai resigned as prime minister, only to be reappointed the next day, enabling him to form a new coalition government.

On 23 February 1991, a bloodless military coup led by the National Peace Keeping Council (NPKC) ousted Chatichai's government alleging massive and systemic corruption. The NPKC declared martial law, abrogated the constitution, and dissolved the cabinet. An interim constitution approved by the king was published in March 1991. A former diplomat and business executive, Anand Panyarachun, was appointed prime minister. Despite public protest, a draft constitution presented in November was approved on 7 December 1991.

In March 1992, General Suchinda became prime minister amid continued unrest. Two months later, Major General Chamlong called for the resignation of Suchinda and an amendment to the constitution at a rally attended by 100,000 demonstrators. Chamlong pledged that he would fast to death, but gave the government a one-week grace period to amend the constitution to prohibit the appointment of an unelected prime minister. When it appeared that the government might renege on this agreement, the peaceful demonstrations resumed. On 17 May 1992, about 150,000 demonstrators met at Sanam Luang parade grounds in central Bangkok. Leaders called for the demonstrators to walk toward Government House down Ratchadamnoen Avenue. Demonstrators broke through roadblocks established by the police and set fire to vehicles and a nearby police station. At 4 am on 18 May the demonstrators were counterattacked with armored vehicles and machine-guns. Government forces arrested Chamlong and killed over 100 demonstrators and detained several thousands. Four days of violence ended with intervention by the king. On 24 May, Suchinda resigned after political leaders guaranteed amnesty to military officers that participated in quelling the demonstrations. On 10 June, the national assembly approved the constitutional amendments, including the prohibition of unelected politicians from forming a cabinet. A general election followed on 13 September 1992, and Chuan Leekpai, leader of the winning Democratic Party, became prime minister.

Chuan's policies emphasized four goals: to eradicate corrupt practices, to reduce the powers of the appointed Senate, to decentralize government from Bangkok to the provinces, and to enhance rural development. Beginning in 1993 and into 1994, Chuan's government faced two "no confidence" motions in parliament, but the government emerged stronger after they failed. In 1994, Chamlong and Palang Dharma became more assertive in demands for constitutional reform, decentralization of state power, and progress in solving Bangkok's traffic problems, which are some of the worst in the world—some commutes reportedly taking up to six hours.

Ultimately corruption charges brought Chuan's governing coalition down. In late 1994, the New Aspirations Party (NAP), led by Chavalit Yongchaiyadh, left the ruling coalition over a planned electoral reform. In May 1995, prior to a vote of no confidence, Chuan dissolved parliament and called for new elections. Having served two years of a four-year term as prime minister, Chuan became Thailand's longest serving civilian leader in the modern era.

During the campaigning leading to the July 1995 elections, politicians spent 17 billion baht buying votes, a seemingly intractable problem. However, the otherwise fair balloting was won by the Chart Thai party, which took 92 (of 391) seats. The former PM, Chuan's Democrats secured 86; the NAP took 57; and Palang Dharma lost heavily, going from 47 to 23 seats. Chart Thai selected as its PM Banharn Silpa-archa. In appointing his cabinet, however, Banharn was immediately perceived as favoring the old corrupted elite, especially when he gave important ministerial posts to Montri Pongpanich and Chalerm Yubamroong, both of whom were well known for their ill-gotten wealth. Even the king, who is revered by Thai society, expressed dissatisfied with the caliber of the new ministers.

Not surprisingly, Banharn's government collapsed before the end of 1996 and elections took place on 17 November 1996. Chart Thai went from 96 seats to 39 as the NAP, led by coalition parties, and Minister of Defense Chavalit Yongchaiyudh, emerged victorious. They swept into power going from 57 seats to 125. Placing second in the balloting was the Democratic Party. Chavalit, one of Thailand's more respected politicians, vowed to appoint a cabinet of technocrats (he called them the "dream team") rather than cronies, and to rescue the Thai economy which had been faltering. Despite his pledge, however, 1997 was a disastrous year for the Thai economy. In mid-May, the stock market collapsed and speculative currency trading hammered the baht. The government intervened, but conditions deteriorated so badly that by July the government decided to float the baht, which had been pegged to the US dollar, causing a precipitous drop. In one day, the currency fell more than 17% against the dollar. The floating of the baht caused international headlines as neighboring Asian countries frantically scrambled to protect their own currencies. By September 1997, the crisis had spread to Singapore, the Philippines, Malaysia, and Indonesia.

Failing to adjust to the crisis, the Minister of Finance Thanong resigned in October 1997 while students demanded the resignation of Chavalit. Despite a reshuffling of the cabinet in an attempt to placate Chart Pattana, Prime Minister Chavalit resigned on November 6. In November, Chuan Leepkai formed a coalition government that included his Democratic Party, Chart Thai, the SAP, Ekkaparb, the Seirtham Party, Palang Dharma, the Thai Party, and a majority of the Prachakorn Thai Party. Despite the perceived integrity of Chuan, the Thai baht continued to experience devaluation. The fragile government survived a no confidence vote in March 1998.

By May 1998, the Thai economy stabilized and began to recover slowly despite the swirling of allegations of corruption that led to the resignation of two ministers. The government accepted a significant International Monetary Fund bailout package and promised to deregulate the economy and adopt transparency. In March 1999, a major privatization bill passed the National Assembly, which allowed government enterprises to become corporate entities without legislative action. On 5 October 1998, Chuan reorganized the government and invited Chart Pattana into the government, extending the coalition's majority in the House of Representatives to 257. In April 1999, the leader of the NAP, Chavalit temporarily resigned as leader of the party in order to prepare for upcoming general elections.

In March 2000, the first ever Senate elections took place in accord with the 1997 constitution. The nonpartisan elections fielded 1,521 candidates who, by law, refrained from campaigning.

In general elections held in January 2001, media tycoon Thaksin Shinawatra's Thai Rak Thai (Thais Love Thais) Party won a major victory, making him prime minister. The new party took 248 of 500 seats in the House of Representatives, and Thaksin formed a coalition government with the Chart Thai (Thai Nation) Party and New Aspiration Party. The elections were marked by voting irregularities. Thaksin promised to help small businessmen and farmers in Thailand, pledging to postpone farmers' debts for three years and allocate credit of approximately us$23,000 each to more than 70,000 villages.

In March, a plane that Thaksin was due to board in Bangkok exploded, in what was regarded as an attempted assassination plot.

During 2001 and 2002, relations between Myanmar and Thailand improved. The two countries held talks in June 2001, attempting to ameliorate disagreements over the drug trade and border tensions. By September, Myanmar pledged to eliminate drug trade in the Golden Triangle by 2005. Thailand committed funds to finance a crop substitution program, and the two countries regarded themselves as good neighbors. However, in May 2002, Myanmar closed its border with Thailand after the Thai army fired shells into Myanmar's territory during a battle between Myanmar's army and ethnic Shan rebels. The border was reopened in October.

On 29 January 2003 riots broke out in the Cambodian capital of Phnom Penh over comments attributed to a Thai actress that Cambodia's Angkor Wat temple complex was stolen from Thailand. Thailand initially suspended all economic cooperation and business dealings with Cambodia, and closed the border. Cambodian Prime Minister Hun Sen promised to pay us$46.7 million in compensation for the damage done to Thai businesses. Thailand was due to partially reopen its border with Cambodia on 8 February.

Thailand became a focal point for unrest in January 2004, when a militant movement revived an insurgency in the predominantly Muslim southern part of the country. Southern Thailand is a popular vacation spot for American and European tourists, and the revenue that this region generates for the country is substantial. In an effort to contain the violence, the Thai government imposed emergency powers on the region. This action has had little effect on quelling the insurgency, and as of late 2005, violence related to Islamic insurgent activity had claimed more than 1,000 lives. Although the insurgency did not appear to be drawing support from international Islamic terrorist organizations, fear that such groups would enter the conflict persisted in 2005. In hopes of easing unrest, the Thai government also launched an unusual attempt at peace making when it invited schoolchildren in 2004 to fold origami paper cranes to be dropped by airplane over the troubled province. Nearly 120 million cranes were dropped on 6 December 2004 by 50 warplanes, as a gesture that also honored the 77th birthday of King Bhumibol Adulyadej. Militants responded to the gesture by attempting to set off a 22-pound bomb near an area where people had gathered to wait for the cranes. The bomb was discovered and safely defused.

Outbreaks of bird flu between 2002 and 2005 posed further threats to Thai tourism and had claimed 13 lives as of October 2005. The Thai Public Health Ministry announced on 25 October that it would send 400,000 health workers and 900,000 volunteers to scour the country's 21 provinces in search of signs of the deadly virus.

On 26 December 2004, the tourism industry suffered an even deeper blow. Catastrophic tsunami waves triggered by a massive earthquake swept the nation's southwestern area, causing devastation at many of its resorts. More than 5,400 people were killed in the disaster, and Thai officials reported in June 2005 that losses to the tourism industry could run as high as $1.2 billion. The economic impact of the tsunami disaster and continuing unrest in southern Thailand made the Thai Rak Thai government's hold on power increasingly fragile in 2005.

GOVERNMENT

Thailand has been a constitutional monarchy since 1932. The present king, Bhumibol Adulyadej, ascended to the monarchy in 1946 and became Rama IX on 5 May 1950. Until 1958, Thailand was governed under a constitution originally promulgated in December 1932. In October 1958, however, the constitution was suspended, and three months later the king proclaimed an interim basic law providing for a constituent assembly to draft a new constitution. Nine years in the making, a new constitution was promulgated in June 1968, and the first elections under it were held in 1969. In November 1971, Marshal Thanom Kittikachorn overturned the document despite being chosen by its rules.

A period of martial law under a national executive council ensued, with the military continuing in power through an interim constitution. A new constitution, promulgated in 1974, was suspended and replaced by martial law in 1976 when civil disorder ensued. The 1976 constitution was abrogated after an October 1977 coup and under an interim constitution, the king empowered a legislative assembly to draft a new governing document. This constitution, approved by the legislature on 18 December 1978, lifted the ban on political parties and eased some of the martial law provisions imposed in 1976.

On 23 February 1991, the National Peacekeeping Council (NPKC), led by the supreme commander of the Royal Thai Armed Forces, General Sundhara Kongsompong, took over the administration of the country. On 9 December 1991, the NPKC promulgated a new constitution. It provided for a national assembly comprised of elected representatives and an appointed senate, and a cabinet headed by an appointed prime minister. This charter was sympathetic to the needs of the military and gave the junta power over the senate. Protests that resulted in the deaths of pro-democracy demonstrators between 17–20 May 1992 quickly led to a constitutional amendment to provide for an elected prime minister and to curb some of the appointed senate's power. This constitutional amendment was approved by the national assembly on 10 June 1992 and required the prime minister to be a member of the house of representatives. In addition, the revised constitution significantly cut back the powers of the senate by ruling that the speaker of the lower house will be president of the parliament (previously it was the speaker of the senate). The senate is also barred from initiating, or taking part in, "no-confidence" motions. The first elections under these reforms were held on 13 September 1992.

Efforts to amend the constitution again came before parliament in April 1994, and the seven government-sponsored amendments were defeated. These amendments sought to reform Thailand's political structure by institutionalizing political parties and increase the role of the legislature. Prolonged debate and political indecision prevented the passage of these amendments until 27 September 1997, when the new constitution passed with the king's endorsement. According to this constitution, the house of representatives would consist of 500 members, with 400 selected by respective constituencies and 100 seats allocated by proportional representation of all parties exceeding the 5% threshold of popular votes. In an attempt to stabilize the political situation and institutionalize parties, the new constitution requires representatives to resign their seat if they renounce or switch their party membership. The senate, to consist of 200 nonpartisan members, requires all members to hold at least a baccalaureate. Members of both the house and senate serve four-year terms.

POLITICAL PARTIES

Constitutional government in Thailand has been hindered by traditional public apathy, and political parties generally have been formed by military personalities rather than around political issues and programs. Military leader Phibul Songgram, who became prime minister in 1938, did not favor political parties. Phibul's immediate postwar successor, the pro-Japanese Pridi Banomyong, encouraged the growth of parties, but these were generally ineffective, primarily because of Thai inexperience with such institutions.

Upon Phibul and other military leaders' return to power in 1947, parties were banned. In a move designed to undercut a growing threat from other soldiers, Phibul reinstated political parties in 1955 in preparation of the elections for 1957. A new coup, led by Marshal Sarit Thanarat, deposed Phibul in 1957 and again banned political parties. Following the promulgation of a new constitution in June 1968, parties were again legalized and hotly contested the 1969 parliamentary elections. Prime Minister Thanom Kittikachorn's United Thai People's Party won a plurality (76) of the 219 seats in the House of Representatives, giving it a majority in partnership with 72 "independents" supported by Deputy Premier (and army chief) Praphas Charusathien. The Democrat Party, led by civilian politician Seni Pramoj, won 56 seats, becoming the chief opposition party. Following Marshal Thanom's 1971 coup, political activity again subsided in favor of the military. The collapse of military rule in October 1973 led to a resurgence of civilian political groups. In the parliamentary elections of 26 January 1975, 2,193 candidates from 42 political parties contested 269 seats in the House of Representatives. Voter apathy remained a problem, however, as only 47% of the electorate (33% in Bangkok) took part. The conservative Bangkok-based Democrat Party emerged with a meager plurality of 72 seats, thereby failing to secure a majority coalition. On 13 March, Kukrit Pramoj, leader of the Social Action Party (SAP), which held 18 seats, was elected prime minister in a controversial vote; he formed a ruling rightwing coalition with the Social Justice Party (45 seats), the Chart Thai (28 seats), and four smaller groups. The coalition collapsed in January 1975, and in new elections held on 4 April, Seni Pramoj gained the premiership.

In the bloodless military coup of 23 February 1991 by the National Peacekeeping Council (NPKC), General Chatichai's government was turned out. The NPKC promulgated a provisional constitution, and after a brief period paved the way for a civilian interim government headed by Anand Panyarachun. A general election was held 22 March 1992, with 15 parties contesting 360 seats with 2,185 candidates. Persistent vote buying marred an election in which 59.2% of the electorate voted. Results were: Samakkhi Tham (79), Chart Thai (74), New Aspiration Party (72), DP (44), and Palang Dharma (41). A coalition government controlling 195 seats in the House of Representatives was comprised of Samakkhi Tham, Chart Thai, Pratchakorn Thai, the SAP and Rassadorn parties. Narong Wongman was proposed as prime minister until the United States made allegations of Narong's involvement in illegal drug trafficking. In April 1992, General Suchinda was named prime minister. His appointment as an unelected prime minister met with immediate protest. Agreement was reached to amend the constitution to prevent an unelected prime minister, but an apparent change of mind by the government resulted in violent rioting. Suchinda resigned and constitutional amendments were approved by parliament on 10 June. The National Democratic Front, four parties that had opposed the military government, the DP, the New Aspiration Party, Palang Dharma, and Ekkaparb, formed an alliance to contest the elections called for in September 1992.In the wake of the 1976 coup, massive arrests were made of liberal and leftist political elements; political parties were banned, and martial law instituted. Political activity was restored and martial rule partially relaxed under the 1978 constitution. Subsequent elections, held on 22 April 1979, gave no party a clear majority. The SAP won a plurality of 82 seats, and the Thai Nation Party finished second with 38. Gen. Prem Tinsulanonda, who became prime minister in March 1980, formed a new coalition government after the April 1983 elections, in which the SAP emerged with a plurality of 92 seats. Several days after the elections, the Thai Nation Party, which had won 73 seats, subsumed the Siam Democratic Party, which controlled 18. In subsequent elections on 27 July 1986, the Bangkok-based Democrat Party improved its position greatly, winning 100 seats. The Thai Nation Party won 63, and the SAP, 51. These three parties, along with the small Rassadorn—or People's—Party which won 18 seats, formed a new coalition, but with Gen. Prem again as prime minister. The election campaign and balloting were marred by scattered incidents of violence.

In the 13 September 1992 general election 12 parties contested 360 seats in the House of Representatives. Voter turnout was 62.1%. Election results were: the DP (79), Chart Thai (77), Chart Pattana (60), New Aspiration Party (51), and SAP (22). The DP formed a coalition party with Palang Dharma (47 seats) and Ekkaparb (Solidarity) for control of 185 of the 360 seats. The SAP was invited to join the coalition. The leader of the DP, Chuan Leekpai, was named prime minister. Chuan served for two years—the longest continuous civilian rule in modern times—before scandal brought his government down in May 1995. Elections were held in July 1995 which were won by Chart Thai, taking 92 of the expanded body's 391 seats. Chuan's Democratic Party was next with 86 seats; the NAP took 57 and Phalang Dharma slipped from 47 to 23 seats. Banharn Silpa-archa was appointed prime minister, and was almost immediately assailed by the press—and even the king—for assembling a government of largely discredited cronies.

Banharn's coalition lasted barely 14 months and new elections were held in November 1996, the results of which were as follows: NAP, 125 seats; Democratic Party, 123; Chart Pattana, 52; Chart Thai, 39; SAP, 20; Prachakorn Thai Party, 18; Solidarity Party, 8; Seritham Party, 4; Muan Chan Party, 2; Phalang Dharma, 1; Thai Party, 1. Chavalit Yongchaiyudh became prime minister in January 1997. He resigned in November, and Chuan Leekpai once again formed a coalition government including his Democratic Party, Chart Thai, the SAP, Ekkaparb, the Sirtham Party, Palang Dharma, the Thai Party, and a majority of the Prachakorn Thai Party. Constitutional changes, promulgated on 11 October 1997 increased party discipline and loyalty. It requires representatives to resign their seat if they switch or renounce their party affiliations.

General elections were held on 6 January 2001, which were won by the new Thai Rak Thai ("Thais Love Thais") Party, led by Thaksin Shinawatra, who became prime minister. Thaksin, a multi-millionaire telecommunications tycoon, took almost twice as many seats as his rivals, but fell short of an outright majority. Thai Rak Thai took 248 of 500 seats in the House of Representatives, and the Democratic Party of outgoing Prime Minister Chuan Leekpai won 128 seats. Thaksin's coaltion included the New Aspiration Party and the Chart Thai Party. The elections were marred by allegations of fraud and vote-buying. The results of 62 constituencies were thrown out because of voting irregularities, more than half of the disqualifications earned by candidates from Thai Rak Thai. Those constituencies held reelections on 29 January. Thaksin was indicted by the National Counter Corruption Commission (NCCC) in December 2000 for failing to report some of his wealth. In August 2001, the Thai constitutional court voted eight to seven to acquit Thaksin of assets concealment.

Thaksin retained a secure grip on power, and was re-appointed prime minister on 11 March 2005 following the Thai Rak Thai's victory in the lower House of Representatives on 6 February 2005. The Thai Rak Thai's showing in the elections was unusual; it marked only the second time in Thailand's 73 years of democratic elections that a single party controlled the country. The election outcome also made Thaksin the first prime minister in Thailand's history to have completed a full four-year term. The Thai Rak Thai leadership is supported by the Machachon Party, with the Democrat and Chart Thai parties comprising the main opposition. Senate elections were scheduled for March 2006, and the next House of Representatives election was to take place in 2009.

LOCAL GOVERNMENT

Thailand is divided into 76 administrative provinces (changwats ), each under the control of an appointed governor responsible to the Ministry of the Interior. Bangkok is sub-divided into 50 districts or "khets." As of 2001, in addition to the provinces, there were 795 districts, 81 minor districts, 7,255 subdistricts or tambon and 70,865 villages. Numerous changes went into effect with the promulgation of the new constitution in 1997. All local administrators are now elected directly by popular suffrage or by the approval of a local assembly. Furthermore, local government officials are prohibited from holding a permanent national position or receiving additional compensation from government related positions.

JUDICIAL SYSTEM

The 1997 constitution provided for an independent judiciary and the guarantee of basic civil liberties. Courts of the first instance, juvenile courts, and magistrates' courts exist in Bangkok and in each of the provincial capitals. There are nine regional courts of appeal, and a Court of Appeal, sitting in Bangkok, hears cases for the entire kingdom. The Supreme Court, also in Bangkok, consists of at least three judges and decides only on points of law. Judges in Thailand are appointed (and removed) by the king. All appointments are subject to initial approval by a judicial commission. There is no trial by jury in Thailand.

The constitution also provided for establishment of a constitutional tribunal to adjudicate disputes among the courts. Military courts deal primarily with military justice, but have broader jurisdiction when martial law is in force. There is no appeal of decisions by military courts. Defendants in ordinary criminal courts are afforded a wide range of procedural due process protections. Although there is no right to counsel during the investigative phase of cases, detainees are afforded access to counsel during trial.

Islamic courts hear civil cases concerning members of the Muslim minority, whose comprise approximately 6.4% of the country's population. The legal system is based on civil law with common law influence.

ARMED FORCES

The armed forces of Thailand in 2005 consisted of 306,600 active duty personnel and 200,000 reservists. The Army numbered 190,000 personnel and whose equipment inventory included 333 main battle tanks, 515 light tanks, over 32 reconnaissance vehicles, 950 armored personnel carriers, more than 2,473 artillery pieces and five attack helicopters. The Air Force was estimated to have 46,000 active personnel with 165 combat capable aircraft, that included 87 fighter/fighter ground attack aircraft, plus transport, training, and helicopter units. The Navy had 70,600 active personnel, which included 23,000 Marines and 1,940 naval aviation personnel. Major naval vessels included one aircraft carrier, 12 frigates, five corvettes and 110 patrol/coastal vessels. The naval aviation arm included seven fighter ground attack aircraft, nine maritime patrol aircraft and six antisubmarine warfare helicopters. Paramilitary forces had an estimated manpower of 113,700, which included the 41,000 member Border Patrol Police, the 2,200 member Marine Police and the 45,000 member National Security Volunteer Corps. In 2005, Thailand's defense budget totaled $1.95 billion.

INTERNATIONAL COOPERATION

Thailand, a member of the United Nations since 16 December 1946, is the headquarters for ESCAP and belongs to several non-regional specialized agencies, such as UNSECO, UNHCR, the FAO, the World Bank, ILO, IAEA, and the WHO. The country is a member of the Asian Development Bank, ASEAN, the Colombo Plan, G-77, and the WTO. Thailand has observer status in the OAS and the Organization of the Islamic Conference (OIC), and is a partner in the OSCE.

Thailand is identified more closely than most Asian countries with the Western nations largely because of its alliance with the Untied States. The nation is part of the Nonaligned Movement. In 1995 Thailand, Cambodia, Laos, and Vietnam established the Mekong River Commission (MRC) to coordinate development in the region. In environmental cooperation, Thailand is the Basel Convention, Ramsar, CITES, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on Climate Change and Desertification.

ECONOMY

Thailand's economy more than tripled in the decade after 1986, achieving approximately 9% real growth annually from 1989 to 1996, before it became an epicenter of the Asian financial crisis of 1997, a regional crisis of investor confidence. Thailand's real GDP declined 1.4% in 1997, and then plunged 10.5% in 1998. In early 1997, the Bank of Thailand spent about $30 billion in foreign exchange reserves trying to defend the baht's value in terms of a basket of currencies against speculation against it, and then on 2 July 1997 abandoned the peg, and allowed the currency to float. The subsequent rapid fall in the baht's value—from 25 bahts to 1 US dollar down to a low of about 53 bahts to 1 US dollar by January 1998—was the proximate cause of the financial crisis that left most business in Thailand technically bankrupt. A $17.2 billion international bailout package was quickly arranged through the IMF, which seeded the loans with a stand-by line of credit running from 20 August 1997 to 19 June 2000 of about $2 billion, subject to a program of economic reform conditionals. Moderate growth returned in 1999 and 2000 (4.4% and 4.6%, respectively), but then dropped to an anemic 1.8% in 2001 in the face of the global economic slowdown and the halving of foreign direct investment worldwide following the 11 September 2001 terrorist attacks on the United States.

Nevertheless, by 2002 the economy had recovered to its precrisis level, with a 5.41% GDP growth rate. The GDP growth rate stood at 6.74% in 2003, 6.2% in 2004, and was estimated at 4.6% in 2005. The drop from 2004 to 2005 was caused in part by high oil prices, a drought, the 26 December 2004 Indian Ocean tsunami, unrest in the Muslim south of the country, and a downturn in the global electronics industry. Growth was projected to average 4.7% a year in 2006–07, driven by higher investment demand as the government embarked on an ambitious infrastructure development program, including electricity generation, transportation, housing, irrigation, health, and education.

Structurally the economy has continued to mature. From 1986 to 1996, agriculture employed about 57% of the labor force while agriculture's contribution to the GDP dropped from 16.7% to about 10%. In 2005, agriculture accounted for 9.3% of the GDP, and as of 2000 employed 49% of the labor force. Thailand has developed a mobile labor market in which many workers migrate between agricultural jobs in the country and self-employment and/or light industry jobs in the cities and industrialized zones. Official unemployment was at a low of 1.5% in the last boom years, 1996 and 1997, and then peaked at 4.4% in 1998. Postcrisis, unemployment rates have slowly declined to 4.2% in 1999, 3.6% in 2000, 3.3% in 2001, 2.4% in 2002, 2.2% in 2003, and to 1.4% as of September 2005. The government's decision not to forcibly repatriate a large number of foreign workers, implementing instead its first "amnesty" program in September 2001 (which gave work permits to about 360,000 foreign migrants employed mostly in semiskilled jobs in the fisheries and construction), has helped slow the decline of the unemployment rate. Official figures, moreover, do not adequately reflect the seasonal unemployment of about two million agricultural workers during one third of the year. Overall, the shift of workers out of agriculture continues particularly in the northeast, where agriculture is less productive, providing a steady inflow of workers to Bangkok and other industrialized areas who contribute to Thailand's expanding and diversified manufacturing and construction sectors. Manufacturing grew by 17% in 1995 and accounted for 33% of GDP, up from 22% in 1992. In 2002, manufacturing's share of GDP was up to 36.5%. In all, industrial production in 2002 was at 22% above the level attained in 1995 according to the country's industrial production index. The industrial production growth rate was estimated at 8.2% in 2005.

The Thai manufacturing sector is notable for its wide diversity, with rapid growth in the production of computers and electronics, automobiles, garments, footwear, synthetic fibers, furniture and wood products. In its efforts to recover economic momentum, Thailand faces strong competition from China, Indonesia, Vietnam, Pakistan and Bangladesh, where cheap labor diminishes the competitiveness of Thailand's labor-intensive industries.

Inflation appears to be under control. In the last years of the 1986–96 boom, the annual inflation rate averaged between 5% and 6% as measured by the consumer price index (CPI). The rate increased to 8% in 1998, but in 1999 had fallen to a negligible 0.3%. In 2000 and 2001, inflation was less than 2% (1.6% and 1.7%), and was only 0.6% for 2002. By 2005, the inflation rate had risen to an estimated 4.8%, but lower global oil prices from mid-2006 were projected to lead to lower inflation in 2007.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Thailand's gross domestic product (GDP) was estimated at $545.8 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $8,300. The annual growth rate of GDP was estimated at 4.6%. The average inflation rate in 2005 was 4.8%. It was estimated that agriculture accounted for 9.3% of GDP, industry 45.1%, and services 45.6%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $1.601 billion or about $26 per capita and accounted for approximately 1.1% of GDP. Foreign aid receipts amounted to -$966 million or about -$16 per capita and accounted for approximately -0.7% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Thailand totaled $81.01 billion or about $1,307 per capita based on a GDP of $143.0 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 3.4%. In 2001 it was estimated that approximately 23% of household consumption was spent on food, 5% on fuel, 3% on health care, and 13% on education. It was estimated that in 2004 about 10% of the population had incomes below the poverty line.

LABOR

Thailand's labor force in 2005 was estimated at 35.36 million (compared with 21.7 million in 1981 and 15.1 million in 1967). In 2003, agriculture and related occupations accounted for 44.9% of the workforce, with industry at 19.7%, services at 35.3%, and 0.1% in undefined occupations. In September 2005, unemployment was put at 1.4%.

Because of persisting government opposition to unions, organized labor was not a major factor in Thai life prior to the 1970s. Labor legislation in 1969 delineated certain basic workers' rights, and unions were granted greater freedom to organize under the Labor Relations Act of 1975. The Thai Trade Union Congress is the largest labor federation. As of 2002, only 2% of the labor force (11% of industrial workers) was unionized. Minimum daily wage rates in 2002 ranged from $3.01 to $3.71 depending on the cost of living in different provinces. Legislation regulating hours and conditions of labor, workers' compensation, and welfare also exists, however, these laws are weakly enforced.

While forced labor is prohibited by the Thai constitution, there are reports that workers are physically prevented from leaving some sweatshops, especially ones which employ illegal immigrants from Laos, Cambodia, and Burma. These same sweatshops have also been accused of using physical coercion to meet production goals.

The minimum working age was raised to 15 in 1998, but this law has not traditionally been effectively enforced. As of 2002, it was estimated that there were one million children working on family farms. Another 240,000 to 410,000 children were working in urban areas.

AGRICULTURE

With some 17.7 million hectares (43.7 million acres) of farm land, of which about 9.2 million hectares (22.7 million acres) are under rice cultivation, Thailand continues to rely heavily on agriculture, although the country has suffered from declining export prices in recent years. Rice is the major crop grown; Thailand is the world's biggest rice exporter. Total rice production amounted to 17.07 million tons in 2004/05. The government has embarked on largescale irrigation projects and introduced higher-yielding varieties of rice in an effort to increase production. In 2004, agricultural products accounted for 12.4% of exports and Thailand's agricultural trade surplus was over $8 billion (8th in the world).

Rubber, also a major export, is grown on the peninsula and, to a lesser extent, on the southeast coast. Total production in 2004 was 3,030,000 tons, the highest in the world and accounting for 31% of all production that year. Demand for natural rubber is growing along with the international concern about AIDS. Sugarcane production reached 67.9 million tons, while output of cassava (tapioca), traditionally important in Thailand, totaled 20.4 million tons. Thailand provides about 95% of the world's cassava exports. Much of the harvest is processed into chips and pellets and exported to the EU for fodder. Higher EU tariffs, however, have caused the Thai government to promote dairy, fruit, rubber, and cashew farming instead. Corn production, which has increased significantly in recent decades, reached 4.09 million tons in 2004. One third of annual corn production is consumed annually as fodder, with the remainder being exported to Europe and Japan. Kenaf, tobacco, cotton, and kapok are cultivated mainly for domestic use, but quantities of jute, cocoa, peanuts, soybeans, and medical plants are exported. Canned pineapple and fresh flowers, especially orchids, are important exports. The Thai government's official policy of encouraging mountain villagers to grow coffee, apples, strawberries, kidney beans, and other temperate crops instead of the lucrative opium poppy and marijuana has had some success; another aim of the project is to discourage deforestation through slash-and-burn cultivation. In 1987, King Bhumibol Adulyedej received a Magsaysay Award for International Understanding for his 20 years of effort in this area.

In the mid-1970s, farmers began to organize to express their discontent over the disparity between farm and nonfarm incomes. To improve farm conditions, the government legitimized squatters' rights to nearly 500,000 hectares (1,236,000 acres) of land classified as forest reserve and established credit and crop insurance programs for farmers. The government Marketing Organization for Farmers, founded in 1975, allows farmers to buy fertilizers, machinery, and equipment at the lowest possible prices and assists in crop marketing. It is also government policy to channel revenues from agricultural export taxes to a welfare fund called the Farmers Assistance Fund.

ANIMAL HUSBANDRY

Cattle, used for plowing and harrowing, are important to rice farming, and most rural households have some cattle as well as hogs, chickens, and ducks. In 2005, Thailand had 5.5 million head of cattle, 1.8 million head of buffalo, 7.2 million hogs, and 50,000 sheep. Other livestock included 260 million chickens and 17 million ducks. Elephants, important as draft animals in rural areas, are used to haul teak. Crocodiles, raised for their skins, are a specialty livestock product; in 2003, 10,987 tons of Siamese crocodile were produced. Production of animal products in 2005 included (in tons): meat, 1,896,859; milk, 900,000; eggs, 694,000; cattle skins, 48,300; and silk, 1,600.

FISHING

Fish is a major protein element in the Thai diet. Freshwater fish, abundantly found in rivers and canals, and marine fish (from the waters along the lengthy coastline) produced a catch of 3,590,452 tons in 2003 (7th in the world), as compared with 846,600 tons in 1967. Leading marine species in the 2003 harvest included (in tons): sardines, 148,564; anchovies, 157,556; Indian mackerels, 150,800; and threadfin breams, 104,505. Thailand exports cured fish to neighboring countries, and frozen shrimp and prawns mainly to Japan. In 2003, Thailand accounted for 6.1% of the world's exports of fish and fish products, valued at over $3,906 million. Giant tiger prawn, tilapias, hybrid catfish, and green mussels accounted for most of the aquacultural volume.

FORESTRY

Thailand's forested area declined from 53% of the nation's land area in 1961 to only 28% by 2000, mainly as a result of the continued use of slash-and-burn practices by farmers. The government's 2002–06 development plan has the objective for forests once again to cover 40% of the land area, of which 25% would be conservation forest and 15% would be for timber. Of Thailand's 17.01 million hectares (42.03 million acres) of forest in 2004, over 50% lies in the north, where teak and pine predominate. About 96% of the forest area is natural forest and the rest is reforestation and secondary growth. Rubber trees, planted mostly in the south, make up 10% of the forest area. The remainder consists of yang (keruing) plantations and rosewood, other species used as fuel, and smaller mangrove forests and conifers. Teak, once a major export, has declined in importance, largely because of government restrictions on cutting and past depletion of the forests through excessive harvesting and inadequate replanting. Yang, pradu, takien, krabak, and krabok are other traditional hardwoods that have suffered severe production declines. Thailand imposed a ban on logging government-owned timber in 1989. Lac, a resinous insect substance found on trees, has always had value for the Thai, but its derivatives—seedlac, sticklac, and shellac—have also found a ready international market. Other important forestry products include charcoal, gums and resins, and kapok fiber and seed.

In 2004 production of roundwood was estimated at 27.8 million cu m (980.9 million cu ft), with 72% used as fuel. Production of tropical hardwood products in 2004 included (in cubic meters): sawn wood, 288,000; veneer, 165,000; and plywood, 100,000. Thailand is a negligible exporter of tropical logs and lumber. However, Thailand now exports primarily value-added wood products (mostly furniture, picture frames, utensils, and other items). Exports of wood products in 2004 totaled $870.9 million. Imports of logs, timber, and wood products in 2004 were valued at $1,033 million.

MINING

Thailand in 2004, was one of the world's leading producers of feldspar and gypsum and was a leading exporter of each, as well as of cement. In addition to feldspar and gypsum, tin metal, tantalum powder and zinc metal were leading export minerals for Thailand. The country also had considerable resources of diatomite, dolomite, limestone, potash, rock salt, and a wide variety of other industrial minerals. In 2000, Other important minerals were barite, natural gas, gemstones, lead, crude petroleum, and silica. Except for gypsum, and tin and its by-products (ilmenite, monazite, struverite, tantalum, and zircon), most mineral production was for domestic consumption. Thailand is a net importer of minerals, mainly because of its large import bills for coal, crude petroleum, iron and steel, primary aluminum, refined copper, gold, refined lead, and silver. Thailand's resources of most metallic minerals and fuel minerals are small. The mining and quarrying sector, which accounted for 2.2% of gross domestic product (GDP) in 2004, grew by 4.9% in that year, and accounted for approximately 3% of the nation's labor forcer.

Tin concentrate production (gross weight) in 2004 totaled 724 metric tons, down from 980 metric tons in 2003. Tin was mined mainly on the southern peninsula, of which 52% was produced from offshore dredging. Tin production has been steadily declining in the face of falling world prices and output curbs. Tungsten concentrate output (gross weight) in 2004 was 337 metric tons. Other metal minerals exploited on a small scale included antimony, cadmium, iron ore, lead, manganese, tantalum, zinc, and zirconium. Iron ore production (gross weight) which totaled 50 metric tons in 2001, leaped to 570,110 metric tons in 2002, fell to 9,675 metric tons in 2003 and then shot upward again in 2004 to 135,580 metric tons. Gold and silver output in 2004 totaled 4,500 kg and 10,700 kg, respectively. There was no production of monazite rare earths from 2000 through 2004.

Among industrial minerals in 2004: feldspar output was 1,001,053 metric tons, up from 824,990 metric tons in 2003; gypsum production was 7.619 million metric tons, up from 7.291 million metric tons in 2003; hydraulic cement production was 35.626 million metric tons, up from 32.530 million metric tons in 2003. Thailand also produced barite, ball clay, kaolin clay, diatomite, metallurgical-grade fluorspar, gemstones, phosphate rock, salt, silica sand (glass), stone (calcite, dolomite, limestone, marble, marl, quartz, and shale), and talc and pyrophyllite. In addition, resources of bentonite and copper have been identified. Exploration in the past five years has focused on copper, gold, and potash. Thailand could soon become an important producer of potash in Asia and the Pacific region. The Somboon deposit was estimated to contain more than 300 million tons of sylvinite ore, with prospects for a two million ton per year potash mine, and the Udon deposit was estimated to contain more resources than the Somboon deposit. One copper deposit, at the Puthep project, near Loei, had ore reserves of 42 million tons of heap-leachable ore at a grade of 0.52% copper.

The government's underlying policy has been to conserve the country's mineral resources and to shift the emphasis to exploration, development, and exploitation of minerals consumed domestically, such as ball clay, feldspar, gypsum, kaolin, silica sand, limestone, lignite, phosphate, potash, rock salt, and zinc, and away from minerals that were predominantly exported, such as antimony, barite, fluorite, tantalum-columbium, tin, and tungsten. Thailand's mining industry consisted of a small mining and mineral-processing sector for ferrous and nonferrous metals, and a large mining and mineral-processing sector for industrial minerals. All mining and mineral-processing businesses except coal, natural gas, and crude petroleum were owned and operated by private companies.

ENERGY AND POWER

Thailand is a net importer of oil and natural gas. However, ongoing strong economic growth is increasing demand for energy.

Thailand is heavily dependent on imports of foreign oil. As of 1 January 2004, the country's proven oil reserves were estimated at 583 million barrels, with crude oil refining capacity for that date estimated at 703,100 barrels per day. Production of oil in 2003 was estimated to average 259,000 barrels per day, of which crude oil accounted for 96,000 barrels per day. Demand however, for that same year was estimated to average 851,000 barrels per day, thus requiring imports that year estimated to average 592,000 barrels per year.

Thailand's proven reserves of natural gas, as of 1 January 2004, were estimated at 13.3 trillion cu ft. In 2002, natural gas output was estimated at 685 billion cu ft, with demand that same year, estimated at 904 billion cu ft. Much of the natural consumed by Thailand is used to generate electricity.

Thailand also possesses recoverable coal reserves that as of December 31, 1999, stood at 1.4 billion short tons. In 2002, coal production was estimated at 21.8 million short tons, with demand that year estimated at 28.1 billion short tons.

In 2002, Thailand's electric power generating capacity was put at 20.929 million kW, of which 17.992 million kW of capacity consisted of conventional thermal fuel sources. Hydroelectric capacity in 2002 came to 2.936 million kW, with geothermal/other sources accounting for 0.001 million kW. Total national output of electricity in 2002 was 102.866 billion kWh, of which 90.9% came from fossil fuel power plants and hydropower for 7.1%, and other renewable sources for the rest. Consumption of electricity in 2002 was 95.992 billion kWh.

INDUSTRY

Seven government agencies supervise the Thai industrial sector: the Ministries of Finance, Commerce, and Industry, the Board of Investment, the Industrial Finance Corporation, the Bank of Thailand, and the National Economic and Social Development Board (NESDB), are in charge of formulating five year development plans. In 1982, an eighth agency, the Industrial Restructuring Committee, was created to coordinate the other seven and to formulate policy proposals in line with economic development plans. The main protective measures Thailand has used are import tariffs and price controls. Tariffs, low in the 1960s, were increased in the 1970s, some to above 90%, and price controls were pervasive. As part of the fifth economic development plan, 1982–86, the government began to lower tariffs and relax price controls. In the economic boom of the early 1990s, trade liberation was continued particularly as the protection of infant industries became less important for Thailand's industrial growth than reducing the cost of imported capital goods and spare parts for rapidly expanding sectors like the automotive industry and electronics.

Manufacturing grew at an average rate of 12% annually in the 1960s and 10% in the 1970s. However, in the wake of the second oil shock in 1978–79, rising interest rates reduced global demand and falling commodity prices adversely affected manufacturing growth. In the period 1971 to 1985 Thailand continued to import most of its manufactures, although there was impressive growth in some sectors. The production of food products nearly tripled, textiles grew by over 500%, and transportation equipment showed even greater growth.

With the collapse of oil prices in 1986, Thailand was propelled into a decade-long boom led by its industrial sector in which the economy more than tripled, ending in the collapse of the baht in early July 1997. Automobile production increased 750% 1986 to 1996, from 74,162 vehicles to a peak of 559,428. Annual growth for automobile production averaged 42.6% 1986 to 1990, and, after a 7% decline in the global recession of 1991, 15% 1992 to 1996. It was the world's fastest-expanding automotive industry and Thailand also became the world's second-largest producer of motorcycles and pick-up trucks. Thai automobile producers invested in capacity expansion on the expectation that demand would grow to about one million cars a year, but the onset of the Asian financial crisis meant that these expectations were unmet. Production fell 35.6% to 360,303 units in 1997 and then another 56.1% to 158,130 units in 1998. Recovery began in 1999, with a 106.9% increase to 327,101 units, and 2000, with a further 25.9% increase to 411,721 units. By 2002, Thailand was on track to match the precrisis peak, with a projected production of 560,000 (56% of capacity). Similarly, motorcycle production by 2001 and 2002 had recovered to match the one-million-plus record set in 1997. By 2004, Thailand had dubbed itself the "Detroit of Asia," and set a production target of one million automobiles for that year; in fact, Thailand produced 928,091 automotive vehicles in 2004, 24% more than 2003. The automotive and auto parts industry was worth $17.5 billion in 2004, generating the country's second-highest level of export revenue after computer and electronic parts. This represented approximately 12% of GDP. Thailand's automobile sector consists of 17 companies, the four largest being Auto Alliance Thailand, Toyota Motor Thailand, MMC Sittiphol, and Isuzu Motor Thailand, which together account for over 70% of production capacity.

By contrast, the cement industry, dependent more on the recovery of domestic demand, has not achieved precrisis production levels. Construction, one of the three leading growth sectors in the boom (with manufacturing and financial services), was the most severely impacted by the financial crisis. While the overall economy decreased 1.4% in 1997 and 10.5% in 1998, construction fell about 25% in 1997 and then over 38% in 1999, as landscapes that had been dominated by construction cranes were transformed into ones dominated by "For Sale" signs and unfinished buildings. Growth did not return to construction until 2002. Annual cement production, which grew from 18,834,000 metric tons in 1990 to a peak of 36,943,000 metric tons in 1997, was at 28,611,000 metric tons in 2002. Thailand produced 35,626,000 metric tons of cement in 2004.

Textiles and garments remain Thailand's largest industry. This includes synthetic fibers production, which in 1995 was growing at a 25% annual rate, one of the fastest in the economy. About two-thirds of the output are ready-to-wear garments destined for markets in the United States and Western Europe. In 2005, there were an estimated 4,500 textile firms employing more than one million workers. By 2002 precrisis production levels had been achieved and slightly bettered, but with a significant proportion of capacity unutilized. In 2004, Thailand produced 845,820 metric tons of spun textile products, and 893,859 metric tons of synthetic fiber products.

Since 1985, electronics has been Thailand's leading manufacturing export sector, employing about 300,000 workers. Annual growth in electronics production has averaged over 20% over the 1990s, with about 80% of the output exported. In 2000, electronics constituted one-third of all exports. Unlike most other manufacturing sectors, electronics production continued to grow during the financial crisis: the devaluation of the baht only made Thai electronic exports more competitive. Leading products include fully assembled computers, computer accessories, and integrated circuits in addition to a wide range of consumer electronics products. In 2004, Thailand produced 9.8 billion integrated circuits.

Among the ASEAN nations during the decade of boom, Thailand became the largest producer of petrochemicals as well as cement and textiles. Unlike most other industries, the refineries continued running near capacity during the crisis years 1997 to 1999. Refinery outputs reached 777,000 barrels per day in 1997, up 225% from 1990, then fell 4.6% in 1998 before recovering to a new high of 809,000 barrels per day (up 9.2%) in 1999. As of 2005, Thailand had four oil refineries and a total refining capacity of 703,100 barrels per day. The largest refineries are run by Shell Company of Thailand Ltd. at Rayong, Thai Oil Company Ltd. at Sriracha, and Esso Standard Thailand Ltd. at Sriracha. Over a third of refined production is distillate fuel oil, production of which increased 350% 1990 to 1999. Motor gasoline and residual fuel oil each account for about 18% of refined outputs, which grew in triple digits, 186% and 126%, respectively, during the 1990s. Other important refinery outputs include jet fuel and liquefied petroleum gases.

One industry that showed uninterrupted annual increases during the crisis was the production of beer, the output of which grew 6.7% 1997 to 1998, and another 6.2% 1998 to 1999. Across the 1990s beer production increased 370%. In 2004, Thailand produced 1.6 billion liters of beer.

SCIENCE AND TECHNOLOGY

The lack of skilled workers remains a drag on industrial development. Many students seek technical training overseas, and some receive postgraduate education in specialized technical subjects at the Asian Institute of Technology in Bangkok (founded in 1959), which offers advanced degrees in agricultural engineering, human settlements, and computer applications. The institute also operates receiving equipment for LANDSAT transmissions that provide Southeast Asian countries with the aerial surveys vital to agricultural development, forest inventories, and city planning.

Scientific organizations include the Medical Association of Thailand (founded in 1921); the Thailand Institute of Scientific and Technological Research (1963), the principle government research agency; and the Science Society of Thailand (1948), all headquartered in Bangkok. National science policy is the responsibility of the Ministry of Science, Technology and Energy. Research and development (R&D) expenditures in 2002 totaled $1,050.722 million, or 0.24% of GDP. In 2001, there were 289 scientists and engineers, and 116 technicians engaged in research and development per million people. High technology exports in 2002 were valued at $15.234 billion, accounting for 31% of the country's manufactured exports.

In addition to the Asian Institution of Technology, 15 other universities offer courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 18% of college and university enrollments.

DOMESTIC TRADE

Bangkok, the port of entry and distribution point for the whole country, is the commercial center of Thailand; all foreign firms have their main offices there. Other commercially important cities are Chiang Mai (teak, rice, and textiles), Ubon Ratchathani (rice, jute, and leather), Phuket (tin), and Songkhla (rubber).

Many essential commodities are grown and consumed by the producer, or distributed at the local level. Production for the domestic market has continued to increase led by high growth industries such as construction materials, foods and beverages, and electronic appliances. In the greater Bangkok metropolitan area, almost every kind of retail outlet is represented, including specialty shops and over 40 department stores. There are about 250,000 retail outlets within the country, mostly small establishments. Department stores, discount stores, hypermarkets, and convenience stores are all available. Both local and foreign franchise firms have been successful. Rather than shop in traditional "wet markets," a growing number of Thai consumers are utilizing western-style supermarkets. Direct marketing, mail order, and television shopping have all become popular, particularly as credit cards have become more widely accepted. Newspaper, radio, television, and motion picture advertising is available.

Usual business hours are from 8:30 am to 5 pm, Monday through Friday. Shops are open from 9 or 10 am to 8 or 9 pm, and banks from 8:30 am to 3:30 pm.

The annual Bangkok fair in December, originally conceived for entertainment, has developed into a trade fair.

FOREIGN TRADE

Thailand supplies the world with a large proportion of its natural rubber, rice, and seafood exports. Thailand is an exporter of automobiles and auto parts, electronic goods, and textiles and apparel. In 2004, the major exports, in percentage terms, were: machinery and mechanical appliances (13.5% of all exports); electrical apparatus for circuits (13.2%); computers and parts (9.4%); and electrical appliances (8.8%). The major imports were: electrical machinery (14% of all imports); fuel and lubricants (10.8%); non-electronic machinery (10.2%); and base metals (9.8%). Thailand's leading markets in 2004 were: the United States (16.1% of all exports); Japan (14%); China (7.4%); and Singapore (7.3%). The leading suppliers were: Japan (23.8% of all imports); the United States (8.6%); China (7.7%); and Malaysia (5.8%).

BALANCE OF PAYMENTS

In 1996, a weakening economy and a decline in export growth created a current account deficit that amounted to 8% of GDP. Simultaneously, high interest rates and a currency tied to the dollar attracted

Country	Exports	Imports	Balance
World	80,331.0	75,804.8	4,526.2
United States	13,671.4	7,179.7	6,491.7
Japan	11,406.3	18,260.7	-6,854.4
Singapore	5,871.6	3,269.0	2,602.6
China	5,701.4	6,065.3	-363.9
China, Hong Kong SAR	4,326.5	1,074.0	3,252.5
Malaysia	3,876.7	4,532.4	-655.7
Other Asia nes	2,588.9	3,230.3	-641.4
United Kingdom	2,587.1	930.7	1,656.4
Netherlands	2,372.8	616.4	1,756.4
Indonesia	2,277.1	1,781.0	496.1
(…) data not available or not significant.

Current Account			7,965.0
Balance on goods		11,606.0
Imports	-66,790.0
Exports	78,397.0
Balance on services		-2,729.0
Balance on income		-1,802.0
Current transfers		890.0
Capital Account			…
Financial Account			-8,183.0
Direct investment abroad		-558.0
Direct investment in Thailand		1,866.0
Portfolio investment assets		-937.0
Portfolio investment liabilities		302.0
Financial derivatives		…
Other investment assets		-416.0
Other investment liabilities		-8,441.0
Net Errors and Omissions			736.0
Reserves and Related Items			-518.0
(…) data not available or not significant.

tracted money to an economy without sufficient productive assets to support the inflow. The government was forced to pursue a high interest-rate policy to protect the currency. When the cost of doing so got too high, the government let the currency float against the dollar, which resulted in a 20% devaluation. By mid-1997, Thailand's short-term debt obligations had reached $23.4 billion, consuming three-quarters of its foreign reserve holdings. In August of 1997, Thailand agreed to an economic restructuring package with the IMF that included $10–20 billion in standby credits. The GDP contracted by 10.8% in 1998, compared with an average growth rate of 8.5% from 1990 to 1996. The economy since the 1997–98 crisis subsequently rebounded, and strong export performance drove economic growth in 1999–2000. Nevertheless, structural reform was still needed, especially in agriculture, education, and small- and medium-sized businesses. Growth declined in 2001, due in part to the global economic downturn, a downturn in export demand, a slow pace of corporate debt restructuring, and a struggling financial sector. Severe Acute Respiratory Syndrome (SARS) negatively impacted trade and travel in 2003.

Thailand ran a merchandise trade surplus of $10.6 billion and a current-account surplus of $6.6 billion (equivalent to 4.1% of GDP) in 2004. The country's diversified export base comprises agricultural commodities and manufactures, although 80% of exports now consist of manufactured goods, many of which are dependent upon imported inputs.

BANKING AND SECURITIES

The central bank is the Bank of Thailand, established in 1942. It operates as an independent body under government supervision; its entire capital is owned by the government. The Bank issues notes, a function previously handled by the Ministry of Finance.

The financial sector is broad and diverse. In 2002 there were 33 commercial banks operating the Thailand, 13 domestic and 19 foreign owned. The top three Thai banks are Krung Thai Bank, Bangkok Bank, and Thai Farmers Bank. Many of Thailand's domestic banks are owned by a few wealthy Chinese families. Shareholdings in even the largest banks, led by Bangkok Bank and the Thai Farmers Bank, are structured to insure family control. US banks with full branches in Thailand include Citibank, Chase Manhattan Bank, and Bank of America.

In general, Thai banks have suffered management problems in recent years and are having difficulty in complying with capital-adequacy and other requirements set by the Bank for International Settlements (BIS). The baht currency crisis dealt a severe blow to the banking industry and has prompted a major restructuring of the banking industry. By mid-2000, nonperforming loans accounted for about a third of total lending, down from a peak of almost 48% mid-1999. Thai banks are being forced to accept big write-offs by selling nonperforming loans for as little as 30% of the loan's face value.

The Thai domestic banking system has been criticized for failing to mobilize adequate domestic savings and for not offering adequate incentives to savers. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $14.4 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $119.3 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 2%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 3.75%.

Thailand's first public stock exchange was opened in Bangkok on 30 April 1975 (the Securities Exchange of Thailand-SET). All of its 30 members were Thai-owned securities firms. The Ministry of Finance encourages companies to go public by reducing income tax for listed companies and also by according favorable tax treatment of dividends. It was not until the late 1980s that the market was taken seriously by the international and domestic financial communities. Because of the Asian financial crisis, the stock exchange lost its appeal as a source of corporate funds. In 1998, however, a four-year downward trend was reversed on news of a strengthened baht. The rally could not be sustained and by years end the SET index was down 4.5%, a substantial improvement over the 55% decline in 1997. In all, the exchange lists 449 companies with a combined market capitalization of just over $36 billion. The turnover ratio is high at over 109%. The SET index was up 12.9% in 2001, at 303.9. As of 2004, at total of 465 companies were listed by the combined SET and the Market for Alternative Investment, which had a market capitalization of $115.400 billion. In that same year, the SET fell 13.5% from the previous year to 668.1. The turnover ratio in that same year was 95.8%.

INSURANCE

There is a wide variety of insurance companies doing business in Thailand, including the American International Assurance Co., the Asian Reinsurance Corp., Assets Insurance Co., Bangkok Insurance Public Co., Commercial Union Assurance Co., Guardian Assurance Co., Indara Insurance Public Co., Navakij Insurance Public Co., Paiboon Insurance Co., Phatra Insurance Co., Safety Insurance Co., Samaggi Insurance Co., the Thai Insurance Public Co., the Viriyah Insurance Co., and Wilson Insurance Co. In Thailand, both workers' compensation and third-party automobile liability are compulsory. The government's company, however, holds a monopoly on workers' compensation insurance. As of 2003, foreign investors were only allowed to own 25% of a Thai insurance company, but these regulations were slated to be relaxed within 10 years. In 2003, the value of all direct insurance premiums written totaled $4.932 billion, of which life insurance premiums accounted for $3.222 billion. For that same year, Thailand's top nonlife insurer was Viriyah, which had gross written nonlife premiums totaling $229.1 million, while the country's leading life insurer, AIA, had gross written life insurance premium of $1,526.8 million.

PUBLIC FINANCE

Only a few utilities—power generation, transportation, and communications—are owned by the government, which is fiscally conservative in what is essentially a free-enterprise system. Following the Asian financial crisis of 1998, the Royal Government of Thailand took strong macroeconomic steps to stimulate the economy. By 2005, it appeared the country was among the few in the region that had recovered.

The US Central Intelligence Agency (CIA) estimated that in 2005 Thailand's central government took in revenues of approximately $30.6 billion and had expenditures of $31.7 billion. Revenues minus expenditures totaled approximately -$1.1 billion. Public debt in 2005 amounted to 35.9% of GDP. Total external debt was $50.63 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were b1,159.4 billion and expenditures were b1,038.6 billion. The value of revenues was us$28 million and expenditures us$25 million, based on a official exchange rate for 2003 of us$1 = b41.485 as reported by the IMF. Government outlays by function were as follows: general public services, 13.5%; defense, 7.3%; public order and safety, 6.0%; economic affairs, 23.3%; environmental protection, 0.1%; housing and community amenities,

Revenue and Grants	1,159.4	100.0%
Tax revenue	914.8	78.9%
Social contributions	46	4.0%
Grants	2.5	0.2%
Other revenue	196	16.9%
Expenditures	1,038.6	100.0%
General public services	140.2	13.5%
Defense	75.9	7.3%
Public order and safety	62.8	6.0%
Economic affairs	242.3	23.3%
Environmental protection	1.4	0.1%
Housing and community amenities	39.6	3.8%
Health	111.3	10.7%
Recreational, culture, and religion	7.9	0.8%
Education	236.8	22.8%
Social protection	120.5	11.6%
(…) data not available or not significant.

3.8%; health, 10.7%; recreation, culture, and religion, 0.8%; education, 22.8%; and social protection, 11.6%.

TAXATION

Thailand, as of 2005, had a progressive personal income tax structure with a top rate of 37%, and that is applied to the person's total income, including dividends from stock and capital gains. Business and individual citizens are also subject to a host of indirect taxes, including customs duties, sales tax, and excise taxes.

Corporate income taxes on net profits are levied at a flat rate of 30%. However, small and medium companies, and those firms newly listed on the national stock exchange, can opt for lower rates. Companies involved in certain types of projects can also qualify for various reliefs and exemptions. In addition, there is a 10% profits remission tax and a 5% tax on gross income if the profits of a nonresident company cannot be determined. Capital gains are treated as ordinary business income and are subject to the corporate rate. Dividends are subject to a 10% withholding tax, but those received by one resident company from another resident company may qualify for a 50% exclusion, although the full amount may be excluded, if certain conditions are met. Generally interest income and royalty income are subject to withholding taxes of 15%.

As of 1 October 2005, Thailand had a value-added tax (VAT) rate of 10% on goods, services and imports. However, exports, international transport are zero-rated. Domestic transport, rents from immovable property and educational and health services are exempt. In addition, a municipal tax is levied on certain businesses.

There are excise taxes on tobacco, petroleum products, alcoholic beverages and soft drinks, and other products. Automobiles are subject to a special tax based on engine size.

Thailand has double taxation treaties with 33 countries, including the United States, Canada, Australia, Belgium, Denmark, Finland, France, and Germany. The US treaty has been in force since January 1998.

CUSTOMS AND DUTIES

Thailand's customs tariff is primarily for revenue, although in a limited fashion it protects local industry. No preferential treatment is afforded any country and all goods are subject to the general rate. Only a few goods require import licenses, including some foods, materials, and industrial products. Products banned from import include aerosol mixtures of vinyl chloride monomers (for health reasons) and products constituting trademark infringement.

The Thai government began to reduce tariffs in 1994, although progress was impeded in 1997 due to a shortfall in government revenue. Still, duties that had ranged between 30% and 60% have been cut to between 1% and 45%, with the total number of tariff bands reduced from 39 to 6. There is a zero rate for essential items like medical equipment and fertilizer. The rate is 30% for certain items designated as needing special protection, like fabrics, clothing, refrigerators, and air conditioners. In addition to tariffs, some imports designated as luxury goods are subject to an excise tax. Import surcharges, designed to deter imports, were imposed in 1981 at rates between 5% and 30% on certain fibers, piston rings, palm oil, and telephones.

Thailand is a member of the Association of Southeast Asian Nations (ASEAN) and the World Trade Organization (WTO). ASEAN members have established the ASEAN Free Trade Area (AFTA), which promotes reduced tariffs on most processed agricultural and industrial products traded among ASEAN countries. A proposal to link the economies of Australia and New Zealand to AFTA is also under discussion.

FOREIGN INVESTMENT

Growth of the Thai economy has been directly related to the flow of investments from abroad. In order to stimulate such investment, the government passed the Industrial Promotion Act (1962), which established the Board of Investment for Industry, renamed the Board of Investment (BOI) in 1972. National Executive Council Announcement Number 218, otherwise known as the Alien Business Law of 1972, restricted the participation of non-Thai nationals in certain types of business activities. The BOI, the powers and responsibilities of which were broadened in 1977, grants the following benefits to promoted industries: guarantees against nationalization and competition from government industries; exemption from import duties and business tax on plant, machinery, spare parts, and raw materials; exemption from duty on exports; exemption from tax on corporate income for a specified period; and repatriation of capital and remittance of profits abroad. In the wake of the Asian financial crisis, the Thai government embarked on an IMF-supervised program designed to make the economy more open and transparent for foreign investment. The 1972 Alien Business Law was replaced by the Alien Business Act of 1999, which opened additional business sectors to foreign investors, and raised the maximum ownership in some cases to above the old 49% limit. Limits on foreign ownership are most prominent in the financial sector, although now up to 100% ownership is permitted in Thai financial institutions for up to 10 years. A number of restrictions affect portfolio investments so that Thai authorities can track foreign investment.

In 1999 legislation was passed establishing a new bankruptcy court as well as new bankruptcy and foreclosure procedures, allowing, for instance, creditors to pursue payment from loan guarantors. Restrictions on property ownership were liberalized through amendment to the Land Code, the Condominium Act and the Property Leasing Act. Many of the reforms met political and were only partially and inconsistently implemented. In 2001 in the wake of the 11 September 2001 terrorist attacks on the United States there was a world wide contraction in foreign direct investment (FDI) and the government instituted a number of incentives to compete for scarcer investment funds, including tax incentives for firms to locate their regional headquarters in Thailand and several new government-backed investment funds to attract foreign money. To support its industrial exports, Thailand has 11 export processing zones located within industrial estates to which businesses may import raw materials and export finished products duty free. Also, factories may apply to establish bonded warehouses on their premises to which raw materials used exclusively to produce exports may be imported duty free.

According to the BOI, in 1997 the net flow of FDI to Thailand was about $3.3 billion and then more than doubled to $7.4 billion in 1998. Net portfolio investment, by contrast, peaked at $4.6 billion in 1997 and then fell to $0.3 billion in 1998. FDI decreased from $5.7 billion in 1999 to $3.8 billion in 2001 to an estimated $2.7 billion in 2002. The inflow of foreign investment has in any case been insufficient to offset the loan repayments Thailand has been making since the onset of the financial crisis. The balance on its capital and financial account reached a low of -$12.6 billion in 1998, but in 2002 this had moderated to a -$4.2 billion. The major sources of FDI in 2001, excluding bank recapitalization, were Singapore and Malaysia, both the source of direct investment totaling over $1.5 billion, followed by Japan, contributing about $1.3 billion. Industry and services, particularly tourism, were the two major recipients of FDI in 2001. According to the Bank of Thailand, net direct investment from Thailand to other countries was negative in both 2000 and 2001, at -$52 million and -$171 million, respectively.

FDI, including inflows from the banking sector, totaled $610 million in 2004 (January to October), compared with $1.4 billion in 2003 (January to October). Major FDI recipients included metal and nonmetallic processing, petroleum products, and services sectors. Japan was the largest source of FDI in 2004, followed by Germany and the United States.

ECONOMIC DEVELOPMENT

The Thai government, vulnerable in its financial dependence on a few primary commodities (rice, rubber, tin, and teak), has pursued a policy of economic diversification through industrial development and increased agricultural production. With the beginning of the first development plan in 1961, the government committed itself to the primacy of private enterprise and to a policy of fostering and assisting it. Thailand has also followed a policy of foreign trade and exchange liberalization. Foreign exchange control is nominal.

Thailand's first five-year plan, covering the period 1961–66, aimed to raise the standard of living by means of greater agricultural, industrial, and power production. In the second development plan (1967–71), emphasis was placed on agricultural development, highways, irrigation, education, and industrial development in the private sector. The third development plan (1972–76) placed special emphasis on improvements in the rural infrastructure, growth in the financial and commercial sectors, and further assistance to crop diversification and to import-substitution industries. The government also committed itself to a reduction in the role of state-owned enterprises. The first three plans did much to increase the standard of living and to bring new roads, irrigation schemes, and land reform to the prosperous Bangkok region. But these changes also increased the income gap between rural and urban Thailand and drew increasing numbers of migrants to the city in search of work. Accordingly, the fourth economic plan, covering the years 1977–81, emphasized decentralization of industry and economic growth from the capital region to the provinces. It also ended the policy of encouraging import-substitution industries and began the promotion of export-oriented industries able to benefit from the nation's low wage rates. Plans were made for the establishment of industrial estates under the direction of the Industrial Estate Authority of Thailand. The first estate, at Bangchan, 30 km (19 mi) from Bangkok, was fully occupied in 1980 by 51 companies, producing a range of industrial products, including automotive and electrical equipment, chemicals, and processed food. Another industrial estate, established in 1979 at Lard Krabang, also in the Bangkok vicinity, includes, in addition to a general industrial area, a duty-free export-processing zone open to manufacturers willing to establish high value-added and labor-intensive industries for export.

The fifth development plan, covering the years 1982–86, stressed reduction of rural poverty and social tensions and expansion of employment opportunities in the poorer regions. To this end, four investment promotion zones were established. After completion in 1981 of the natural gas pipeline from the Gulf of Thailand, investment priority was reassigned to the Eastern Seaboard Development Program. This ambitious program called for the creation of a new urban-industrial complex in the Rayong-Sattahip region that was expected to draw industries from the congested Bangkok area. Heavy industries were to be emphasized, with early construction of a natural gas separator and plants for the manufacture of soda ash, fertilizers, and petrochemicals. The sixth national economic and social development plan (1986–91) stressed continuing export promotion, streamlining of the public sector, and strict monetary and fiscal policies, with growth targeted at only about 5% yearly. Emphasis was placed on the less capital-intensive industries, and more emphasis was given to improved utilization of resources. The plan targeted private sector investment and initiatives. Privatization of state enterprises would proceed in clear-cut phases, and enterprises were required to seek their own revenue. Agricultural production was forecast to grow at 2.9% per year. The development of small-scale industry, particularly in rural areas, was emphasized. In 1993, the Eastern Seaboard Development Plan southeast of Bangkok—begun 10 years before as a $4 billion investment—demonstrated results with the new port, Laem Chabang. This plan extends greater Bangkok, and the next phases include extending all main national arteries into four-lane highways and double-tracking the railway.

The sixth national development plan coincided with the early part of Thailand's ten-year boom, and most of its economic targets were more than met. The actual average annual rate of real GDP growth—10.5%—was more than twice the targeted 5%. In the seventh development plan, 1992 to 1997, coinciding with the second half of the decade of boom, targets had shifted to a stronger emphasis on balanced, sustained development, and less on growth per se. The plan was formally titled the seventh national development and social development plan. The three official emphases were 1) sustained, moderate growth (though with the target set at a rather heady 8.2% annual real growth rate); 2) redistribution of income and decentralization of planning to achieve reductions in the percent in poverty and in the widening gap between rich and poor; and 3) human resource development. To attain the goals, four sets of policy guidelines were stipulated: policies for stable, noninflationary growth; policies of income redistribution; policies for human resource development and policies for environmental protection. The real GDP growth target was met, though with concern that this was through a combination of a explosive industrial sector growing at an above-target average annual rate of 11.4% and a moribund agricultural sector, growing as below-target annual rate of 1.5%. Inflation averaged only 4.13% a year, better than the 5.6% targeted, but goals to eliminate Thailand's large balance of trade and current account deficits were not met. The average annual savings rate of 9.1% also fell below the plan's ambitious target of 12.8%. Poverty reduction, however, was substantial, with the percent of the population living in poverty falling from 32.6% in 1988 to 11.4% in 1996, which would prove to be its lowest point due to the on-set of the Asian financial crisis the next year. Themes for each region guided development. In the north (Chiang-mai, Lamphrun, and Lampang), light and clean industries are encouraged, such as clothing, high-value electronics, and agro-industry. In the south, transport links and natural gas networks developed between the Andaman Sea and the Gulf of Thailand would attract heavy industry such as petrochemicals, and cross-border development with Malaysia would link with Penang's industrial sector. Development plans for the impoverished northeast included linking with Laos, Cambodia, and Vietnam for processing raw materials from those countries, and for providing services involved with investment and manufacturing in those countries.

Thailand's eighth national development and social development plan, emphasizing again the concern with qualitative as well as quantitative growth, coincided with the on-set of the Asian financial crisis and Thailand's struggle back to precrisis levels of economic activity, 1997 to 2001. The Plan, assuming a continuation of economic growth, put priority on two long-range economic development goals: human development and the replacement of top-down administration with bottom-up processes. Virtually none of the goals of the plan were met as the economy was plunged into recession and high inflation with the collapse of baht in July 1997. Whereas about a million people a year had been lifted out of poverty during the decade of boom, from 1997 to 1999 about a million and a half a year were plunged back into poverty, as the estimated number in poverty rose from 6.8 million to 9.8 million (16% of the population). In August 1997 the eighth economic plan was essentially superceded by the IMF-guided international bailout program that involved a three-year, $17.2 billion support package conditioned on a program of economic reforms. The IMF program did provide from the outset for "the protection of vital health and education expenditures in the central government budget," and, in fact, health expenditures rose by 8% 1997/98 even as revenues fell. The government adhered sufficiently close to the reform program to bring down inflation and replenish foreign reserves, undergirding the reforms with a new constitution. Thailand began repaying the IMF in November 2000 and repaying other lenders in 2001. Net capital flows were negative throughout the five-year planning period but by 2001 had improved to a -$4.9 billion balance from -$12.6 billion in 1998.

The introduction of the ninth national development and social development plan, to run 2001 to 2006, took a philosophical turn as the government presented it as embodying the king's concept of "sufficiency economy" as its guiding principle bestowed on the people as a means of helping his subjects overcome the economic crisis. "Sufficiency economy" was explained as based on adherence to the middle path, and involving moderation not just as a guide for economic policies but as a way of life. Balanced development was to be achieved through a combination of patience, perseverance, diligence, wisdom and prudence. The four pillars of the holistic approach of the ninth plan were social protection, competitiveness, governance, and environmental protection. Within this relatively abstract framework, the more specific elements of the Thaksin government's economic policy strategy in 2001 included the following seven elements: 1) farm debt restructuring, including a three year suspension of some debts owed by poor farmers to state banks; 2) village funds financed by grants of one million baht (about $24,000) to each of the country's roughly 70,000 villages to provide locally administered micro-loans; 3) the transfer of nonperforming loans (NPLs) to the newly established Thai Asset Management Corporation (TAMC), required of state-owned operations and voluntary for private ones, to promote more efficient debt restructuring; 4) special attention to small- and medium-sized enterprises (SMEs) by state-owned lending agencies; 5) promotion of product specialization by village groups, called the "one tambon (group of five or six villages), one product" scheme inspired by a similar Japanese program; 6) the establishment of the People's Bank, administered through the Government Savings Bank (GSB), allowing GBS account-holders to apply for small loans (up to about 30,000 baht or $370) mainly for small retailing or commercial ventures; and 7) a restructuring of the economy away from heavy dependence on imports and towards more reliance on local resources, especially agricultural.

By 2006, the Thaksin government was using expansionary fiscal policy to enhance economic growth. In its first term the focus was on boosting rural incomes and development, but infrastructure development was the priority for Thaksin's second term. From 2006–09, the government planned to invest $41 billion, or 26% of GDP, in infrastructure, spanning electricity generation, transportation, housing, irrigation, health, and education. Thailand was in need of new investment in 2006: transportation costs weighed heavily upon business, and the telecommunications network was outdated, with only one-tenth of the population connected. The government wanted to turn Thailand into a center for regional trade and business, which explains planned new highways to the north into China and stretching as far west as Myanmar and India. Thailand by 2006 had expanded into a few specialist markets with higher, more defensible profits, such as medical tourism (inexpensive but high quality heart bypasses, cancer care, and cosmetic surgery are a few of the services offered to foreigners), long-stay tourism, and a beginning fashion industry.

Other economic policy objectives include the restoration of a solvent banking sector and poverty reduction. In 2005, Prime Minister Thaksin declared Southeast Asia must not look solely to exports to resuscitate its economic fortunes, but should try to revive domestic consumption, which would help insulate the region from the vagaries of the world economy. His policies suspending farmers' debts, instituting inexpensive universal health care, and the granting of loans to villagers, small businesses, and home-buyers were undertaken to this end. The government also subsidized a variety of goods, from computers to cows, to increase Thais' spending power. Nevertheless, exports remain the chief engine of Thailand's growth, from automobiles to integrated circuits to rice.

The threat of an avian flu epidemic in Southeast Asia was present in 2006. Thailand was still rebuilding its areas affected by the 2004 Indian Ocean tsunami.

SOCIAL DEVELOPMENT

A 1990 law established a social security system which began paying disability and death benefits in 1991. Old age benefits (pensions) were introduced in 1998. The pension system is funded by employers, employees, and the government. Old age pensions begin at age 55, and employment mush cease at that time. There is a provision for deferred pension. The social security law also provides for sickness and maternity benefits, which are provided to employees of firms with 10 or more workers. Employers are required to provide workers' compensation coverage, including temporary and permanent disability benefits, and medical and survivor benefits. Maternity benefits are available for two childbirths only.

Women have equal legal rights in most areas, but inequities remain in domestic areas, including divorce and child support. Women constitute more than half of university graduates. Discrimination in hiring persists, and there is a gender gap in wages. Domestic abuse and violence remain a huge problem. Many women are trapped into prostitution through a system of debt bondage. Brothels provide a loan to parents of young women, and these women are required to work as prostitutes to pay off the loan. In many cases, this is done without the consent of the woman involved. As of 2004, prostitution thrived and sex tourism was rampant. Human trafficking is also prevalent.

Many Thai minorities, including many of the hill tribe members, lack any type of documentation. As noncitizens, they do not have full access to education and health care. They lack titles to their land, and may not vote in elections. The government has announced its intention to process and document these groups. Human rights are generally well respected, but some abuses occur. Coerced confessions and the torture of suspects are occasionally reported. Overcrowding in prisons has resulted in poor conditions.

HEALTH

In the 1960s, the government, with UN and US assistance, extended free medical treatment, expanded health education activities in schools and rural areas, and built many hospitals. In the private sector, two-thirds of health care funding comes from employers and private households. A national social security scheme is under way, but private insurers are few. Owing largely to success in eradicating malaria and other tropical diseases, as well as to better sanitation and medical care, health conditions have steadily improved in Thailand.

Health care facilities are concentrated in the Bangkok metropolitan area, where about 15% of the population is located. There are 180 private hospitals and more than 11,000 private clinics. Thai hospitals tend to be small in size. In 2000, 80% of the population had access to safe drinking water and 96% had adequate sanitation. About 59% of the population had access to health care services. Total health care expenditure was estimated at 6% of GDP. In 2004, there were an estimated 30 physicians per 100,000 people.

Common diseases are malaria, tuberculosis, and leprosy. Approximately 13% of children under five years of age were considered malnourished. About 7% of births were of low birth weight. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 16.4 and 7.6 per 1,000 people. It was estimated that 72% of married women (ages 15 to 49) used contraception. In 2005, life expectancy was 71.95 years and infant mortality was 20.16 per 1,000 live births. Maternal mortality was 44 per 100,000 live births.

The HIV epidemic in Thailand is among the best documented in the world. Among brothel sex workers, the HIV infection rose from 3.5% in 1989 to 33% in late 1994. There were 570,000 AIDS cases reported in 2003. Deaths from AIDS in 2004 numbered 58,000. HIV prevalence was 1.50 per 100 adults.

HOUSING

Most families in Thailand live in dwellings that compare favorably with living facilities anywhere in Southeast Asia. The Thai government has stimulated housing and community development by means of a housing plan that provides government mortgages for building, renovation, or purchase of government land and houses. Under a self-help settlement scheme, the government sets up whole new communities, surveys sites, constructs roads and irrigation systems, and provides public utilities and medical care.

In 1973, to house Bangkok residents who had been living in makeshift shelters, the government formed the National Housing Authority (NHA), which undertook overall responsibility for coordination of public and private housing programs. By 1979, the NHA had completed 54,780 housing units. From 1979 to 1984, a total of 1,442,250 housing units were built in Thailand.

According to the results of the 2000 census, there were about 15,349,500 dwelling units serving 15,662,300 households nationwide. The average household had 3.9 people. About 81% of all dwellings were owner occupied. Nearly 80% of all households lived in detached houses. About 67% of all households lived in nonmunicipal areas. Cement, brick, and wood are the main construction material for about 47.9% of all dwelling units; another 44.7% are made of a mixture of permanent and nonpermanent materials. About 39.2% of all households rely on rainwater as their primary source of drinking water; only 18.3% have tap water for drinking inside their dwelling.

EDUCATION

Schooling is compulsory for nine years, including six years of primary school and three years of lower secondary school. Three-year upper secondary schools offer general or vocational studies. Both teacher training and technical and vocational training (especially in agriculture) have been stressed in recent development plans. The academic year runs from June to March.

In 2001, about 85% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 86% of age-eligible students. It is estimated that about 86% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 21:1 in 2003; the ratio for secondary school was about 25:1. In 2003, private schools accounted for about 15% of primary school enrollment and 8.8% of secondary enrollment.

In Bangkok, Chulalongkorn University (founded 1917) is Thailand's most eminent university. Also in Bangkok are the University of Thammasart (founded 1933), specializing in social and political sciences, and Kasetsart University (founded 1943) specializing in agriculture. Newer universities established in provincial areas include Chiang Mai University (founded in 1964), Khon Kaen University (founded in the northeast in 1966), and Prince of Songkhla University (founded in 1968). King Mongkut's Institute of Technology was formed in 1971 through the amalgamation of three institutes, and eight colleges of education were combined into Sri Nakharinwirot University in Bangkok in 1974. A correspondence school, the University of Ramkhamhaeng, opened in Bangkok in 1974 and the Sukhothai Thammathirat Open University began operations in 1978. In total there are 16 state universities in addition to 26 privately run colleges. There are also a large number of teacher training colleges. In 2003, it was estimated that about 38% of the tertiary age population were enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 92.6%.

As of 2003, public expenditure on education was estimated at 5.2% of GDP, or 28.3% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library (founded in 1905) contains over 2.4 million books and over 300,000 manuscripts; The National Library maintains a main library site and eight other sites in Bangkok as well as 17 provincial branch locations. Other important libraries in Bangkok include the Asian Institute of Technology (200,000 volumes), Chulalongkorn University (264,700), the University of Thammasat (231,000), Kasetsart University (313,000), and Sri Nakharinwirot University (299,500). The Library of the Department of Science Services maintains a special collection of 450,000 volumes. Outside Bangkok, sizable collections are maintained at the University of Chiang Mai (655,000) and Khon Kaen University (340,000). The Economic and Social Commission for Asia and the Pacific holds 150,000 volumes. The public library system includes over 70 sites known as Chalermrajgumaree Public Libraries, which were opened with the support of Her Royal Highness Princess Sirindhorn. There are over 70 additional provincial public libraries and over 650 small district libraries.

The National Museum in Bangkok (founded in 1926) has an extensive collection of Thai artifacts, including sculptures, textiles, ceramics, jewels, coins, weapons, and masks. Many of Bangkok's temples and palaces contain excellent examples of Thai frescoes and sculptures. The Temple of the Emerald Buddha has a famous mural of the Ramayana, the Sanskrit epic, and the Marble Temple contains a fine collection of bronze and stone Buddhas. Bangkok also houses the Bhirasi Institute of Modern Art, the Hill Tribes Museum, the Science Museum, and the Sood Sanquichien Prehistoric Museum and Laboratory. The Hall of Opium Museum is near Chiang Rai. There are dozens of other provincial museums throughout the country.

MEDIA

The Ministry of Communications is responsible for Thailand's public postal, telegraph, and telephone services. The postal service, employing both railway and air mail, operates from the central post office in Bangkok and covers the entire country. Thailand is a member of INTELSAT and maintains trans-Pacific and Indian Ocean satellite communications stations. In 2003, there were an estimated 105 mainline telephones for every 1,000 people; about 582,700 people were on a waiting list for telephone service installation. The same year, there were approximately 394 mobile phones in use for every 1,000 people.

Ownership of broadcasting is both public and private, but the government and military tend to dominate radio and television networks. There are about six government and military radio networks. The first mainland Asian television station was established in Bangkok in 1955. As of 1999, there were 204 AM and 334 FM radio stations, and 5 television stations. In 2003, there were an estimated 235 radios and 300 television sets for every 1,000 people. The same year, there were 39.8 personal computers for every 1,000 people and 111 of every 1,000 people had access to the Internet. There were 258 secure Internet servers in the country in 2004.

The first daily newspaper, the Siam Daily Advertiser, appeared more than a century ago. In 2002 there were at least 35 daily newspapers published in Bangkok, including seven in Chinese and four in English. The provinces have weekly and semiweekly publications, all in Thai, but no daily papers. Bangkok also has a variety of weekly and monthly periodicals, most appearing in Thai. Among Bangkok's leading daily newspapers (with language of publication and estimated 2002 daily circulation) are: Thai Rath (Thai, 800,000), Naew Na (Thai, 200,000), Matichon Daily News (Thai, 180,000), Diao Siam (Thai, 120,000), Khoa Sod Daily News (Thai, 120,000), Siam Rath (Thai, 120,000), Phaya Crut (Thai, 100,000), Srinakorn Daily News, (Chinese, 80,000), Sing Sian Yit Pao, (Chinese, 70,000), and the Daily Mirror (English, 60,000).

Citizens are said to enjoy constitutionally provided freedom of speech and a free press. However, the law prohibits criticism of the royal family, threats to national security, and insults to Buddhism. Libel laws have caused some media sources to practice self-censorship.

ORGANIZATIONS

Thailand has an extensive cooperative movement. Credit societies are the dominant type of cooperative; consumer cooperatives are the next largest, followed by agricultural marketing and processing cooperatives. Other kinds of cooperatives, mostly formed during and since the 1930s, include colonization and land improvement cooperatives. Trade organizations under the Ministry of Economic Affairs include the Thai Chamber of Commerce, the Board of Trade, and several foreign trade associations. There are many organizations for promoting the interests of workers and business owners of particular industries, such as the Thai Silk Association and the Thai Tapioca Trade Association.

Professional associations promoting research and development include the Agricultural Science Society of Thailand, the Medical Association of Thailand, and Science Society of Thailand. There are a number of ASEAN organizations with a base in Thailand, including the ASEAN Institute for Health Development, ASEAN Institute for Physics, and the ASEAN Solar Energy Network.

Cultural organizations include the Royal Institute (founded 1933); the Thai-Bhara Cultural Lodge (founded 1940), which sponsors studies in the fields of linguistics, philosophy, and religion; and the Siam Society (founded 1904), which issues studies on Thai art, literature, and science. The National Culture Commission was established in 1979. The multinational organization of the World Fellowship of Buddhists is based in Bangkok.

National youth organizations include the Student Federation of Thailand, Junior Chamber, Girl Guides, the National Scout Organization of Thailand, and YMCA/YWCA. There are many sports associations promoting competition for amateur athletes of all ages in variety of pastimes, such as squash, golf, rugby, and football (soccer).

Social action groups include the Asian Coalition for Housing Rights, Asian Forum for Human Rights and Development, and the National Council of Women of Thailand. There is also the Center for the Protection of Children's Rights Foundation and the multinational Committee for Asian Women. There are national chapters of the Red Cross, UNICEF, Habitat for Humanity, and Amnesty International.

TOURISM, TRAVEL, AND RECREATION

Tourism has become a vital industry in Thailand, offering a range of attractions from outdoor activities to museums and cultural events. Most tourists visit Bangkok and its Buddhist temples (wats). Major sports include football (soccer) and baseball. Thai bull, cock, and fish fighting are also popular (though illegal), along with Thai boxing, golf, badminton, and kite fighting. All visitors must have a passport, visa, and proof of sufficient funds for the stay. Precautions are recommended against typhoid, hepatitis, and malaria.

In 2003, about 10,082,000 foreign nationals visited Thailand. There were 320,565 hotel rooms in 2001, with an occupancy rate of 52%. Visitors to Thailand stayed an average of two nights.

In 2004, the US Department of State estimated the daily cost of staying in Bangkok at $182; in Phuket, $253, and in smaller regions, $118.

FAMOUS THAI

Many ancient Thai kings enjoy legendary reputations. Rama Khamheng (the Great), a 13th-century monarch, is traditionally regarded as the inventor of the Thai alphabet; Rama Tibodi I in the 14th century promulgated the first-known Thai laws; Trailok instituted lasting governmental reforms in the 15th century; and Phya Tak in the 18th century rebuilt a war-defeated Thailand. Two great monarchs, Mongkut (r.1851–68) and his son Chulalongkorn (r.1868–1910), became famous for introducing Thailand to the modern world. They are, respectively, the king and his young successor in Margaret Landon's Anna and the King of Siam. Further progress toward modernization was accomplished in by three outstanding premiers: Phibul Songgram (1897–1964), Pridi Banomyong (1900–83), and Sarit Thanarat (1900–63). Prince Wan Waithayakon (1891–1976), foreign minister and Thailand's representative to the UN, played a major role in diplomacy following World War II. Marshal Thanom Kittikachorn (1911–2004) was leader of Thailand from 1963 until October 1973, when political protests compelled his resignation as prime minister. King Bhumibol Adulyadej (b.US, 1927) ascended the throne in 1946.

Prince Akat Damkoeng was the author in 1940 of the first modern novel written in Thailand, Yellow Race, White Race. Modern styles in painting and sculpture are reflected in the work of Chitr Buabusaya and Paitun Muangsomboon (b.1922), and the traditional manner in the art of Apai Saratani and Vichitr Chaosanket.

DEPENDENCIES

Thailand has no territories or colonies.

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